Farm groups demand shipping reforms and farmer sentiment weakens
From the Ag Information Network, I’m Bob Larson with your agribusiness update.
**A coalition of farm groups calls on the Senate to review shipping reforms.
Specifically, they hope the Senate will consider the Marine Navigation Reform Act passed by the House or similar legislation.
In a letter to lawmakers, the Ag Transportation Coalition
“The crisis in the transportation of American agricultural products has become increasingly serious, adding that it is essential that the Senate also pass legislation to allow American agriculture to remain viable in world markets.”
**At one point, the ethanol industry seemed to have put the COVID-19 lull in the rearview mirror with sky-high production and profit margins.
BUT, Reuters says demand is falling as oil prices rise, leading to record levels of ethanol inventories.
U.S. ethanol stocks hit a five-year low in December but jumped more than 18% in January, the biggest jump since 2010.
**Farmer sentiment weakened in January as Purdue University’s CME Group Farm Economics Barometer fell six points to 119, the second lowest reading since July 2020.
The current conditions index fell 13 points to 133, while future expectations were little changed in January, down two points to 112.
Rising farm input costs and continued supply chain disruptions appear to be contributing to producers’ weaker perception of current conditions and expectations for their farm’s financial performance in 2022.