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We’ve conducted this report series over several years. Our first report started with abnormal weather events (serious flooding in primary corn states) in 2019. We discussed how the delays in corn planting influenced the ethanol gross production margin (GPM) values.
Boar’s Head, a large producer of deli meats and other food products, has recently announced that it will close its facility in Jarratt, Virginia, following a listeria outbreak.
According to the USDA’s September release of the 2024 farm income data, the U.S. net farm income value (in nominal terms) would fall 4.4% to $140.0 billion year-over-year and down about 23% from the record-high estimate in 2022.
Now in our 17th year, it’s hard to believe how quickly time has passed since we celebrated our 15th anniversary.
As of January 2024, the U.S. has 56 active biodiesel plants with a combined annual capacity of 2.09 billion gallons per year. This biodiesel is typically blended with petroleum-based diesel at a 5% to 20% inclusion rate. If blended at the 5% rate, this would make 40 billion gallons of B-5 blended diesel fuel.
Every 4-5 years our Team gets a wave of requests to estimate the economic contribution of agriculture for a number of organizations in many states in the Midwest and beyond.
Agriculture is a favorite target among those looking for somewhere to place blame for greenhouse gas emissions. However, recent research from the Environmental Protection Agency (EPA) shows that agriculture has made more progress in cutting emissions than any other industry in the US.
Happy Spring: Read more on DIS below!
Soybean oil prices increased almost three times more in the summertime of 2021 compared to prices before 2021. Soybean meal price rose back to $493 per ton at the end of 2023, then fell back to $374 per ton in March 2024. Historically, a little over two thirds of the total value of soybean crush products came from soybean meal and the remaining one third came from soybean oil.
RIN prices have come down significantly in the last 9 months. To be competitive, biofuel producers need to be able to sell their fuels at the same price as conventional petroleum fuels. Typically, biofuels have higher costs of production than conventional fuels.
Data released this month by USDA-FAS indicates U.S. pork exports were up 8% to 2.32 million metric tons (MT) in the 2023 calendar year compared with last year (see Figure 1). The value of those exports was estimated at $6.79 billion. U.S. pork exports to Mexico, the leading market, reached an all time record volume of 941,477 MT worth $2.05 billion.
IMPLAN's newest dataset was released at the end of November 2023. This dataset, based on 2022 data, is the most recent snapshot of economic activity by industry at the national, state, and county level.
The U.S. Energy Information Administration (EIA) published its Monthly Energy Review report on December 21st, 2023 and its Monthly Biofuels Capacity and Feed Stocks Update Report on November 30th, 2023. In this article, we will conduct a descriptive analysis of pure biodiesel (B100) production and its feedstocks usage.
According to the USDA-FAS PSD database, reported world consumption of soybean meal was 243.67 million metric tons (mmt) in the 2022/23 marketing year.
Highly Pathogenic Avian Influenza (HPAI) has been affecting US poultry flocks for almost two years now. Cases began in February 2022. Total cases and birds affected by month are shown in Figure 1 & Figure 2.
DIS Estimates the Economic Impact of the Auto Worker Strike
A lot of people know that Decision Innovation Solutions is an economic analytics firm based in Des Moines with expertise in ag-related economics and agribusiness analysis. What is less well-known is the expertise DIS has gained in broader economic development projects for municipalities.
The Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs were first authorized by the Agricultural Act of 2014 (2014 Farm Bill) and reauthorized with modifications by the Agriculture Improvement Act of 2018 (2018 Farm Bill).
The United Auto Workers (UAW), a union of American automobile manufacturing workers, has recently reached a deal with the “big three” US-based automakers: General Motors, Ford, and Stellantis.
Wrapping up 2023 DIS is looking back on great year of helping our clients succeed.
While it seems that 2023 just started, looking at the calendar does indeed show that we have just 10 weeks left in the year. With another year soon coming to a close, I thought an update on the exciting work the DIS Team has been engaged in would be appropriate. As in previous business updates, we continue to be grateful for such a dedicated, hard-working team of professionals here at DIS.
The 2023 U.S. corn and soybean harvest is nearing its midpoint in terms of harvested acres and farmers are now getting a better sense of crop yields following a growing season characterized by extended periods of dry weather across much of Iowa and other parts of the Corn Belt.
In 2016, the state of Oregon launched the Oregon Clean Fuels Program (Oregon CFP); and the state of Washington started its Clean Fuel Standard on January 1st, 2023. Clean fuels/energy standards or programs in 12 other states have been proposed to the state governments
Iowa fertilizer prices began rising in 2021 and peaked during the summer of 2022. Price peaks for each fertilizer were close to double their respective 2018-2020 average prices. Since the peak, prices have generally been trending down, though they still have not reached 2018-2020 levels.
The past several years have been a turbulent period for international trade. With a pandemic, a major trade conflict, a war in Europe, and other weather- and supply chain-based disruptions, there has been no shortage of events causing major changes to the flow of goods around the world.
Happy August! Our team has been really busy this past month, click the link to see what DIS has been up to!
The USDA is continuing to compile the 2022 Census of Ag. that is set to release in the year of 2024. DIS is ready to take action and patiently awaits the results.
David Miller, Chief Economist here at DIS completed a comparison of Brazilian and U.S. exports. Brazil and the U.S. are two of the largest suppliers of corn, soybeans, and meat to China.
Senior Research Analyst at DIS S. Patricia Batres-Marquez outlines Iowa Sales of E15 Continued to Grow in 2022. Based on the latest annual retail fuel sales data published by the Iowa Department of Revenue, Iowa ethanol total sales sales of all blends combined were estimated at 1.098 billion gallons in 2022, down 11%.
Lower hog prices and higher costs have impacted Iowa negatively thus far in 2023, read why...
DIS has conducted this series report over the past years, All data came from National Weekly Grain Co-Products Report from the USDA AMS website. The latest data was updated on June 16th, 2023 (when the blog is written on June 23rd, 2023). GPM calculation shows the calculated relationship between values of ethanol and ethanol co-products and the cost of corn in ethanol production.
The U.S. Department of Agriculture Economic Research Service publishes the Food Access Research Atlas, which is a dataset measuring areas of the U.S. that have difficulty with reliable access to food through grocery stores or supermarkets. There is significant regional variation in the presence of food deserts throughout the United States. While some cities and states appear to have few problems with reliable access to food, it remains a serious issue for many others.
Decision Innovation Solutions has recently been listed as a Value-Added Agriculture Consultants and Service Providers. Read the article below to learn more on VAPG.
Read the latest trends for imports and exports of food, feed and drinks (FFD) for the UK.
With 2023 almost being halfway through here is a recent update of what we have been up to here at DIS!
Check out the latest Soybean crush update!
Demand to Drive Oil Prices Moving Forward-The recent OPEC+ production cut and the quick jump in oil prices caused concern prices to be headed that way again. While a possibility that is not a guarantee.
The IMPLAN modeling system continues to expand and improve. The IMPLAN API makes large projects more feasible, and IMPLAN now has several different data products allowing for economic impact and contribution analyses to be conducted internationally.
Take a look at the 2023 Corn update compared to the past 2 years!
The U.S. Energy Information Administration (EIA) published its Monthly Energy Review report on February 23rd, 2023 and its Monthly Biofuels Capacity and Feed Stocks Update Report on February 28th, 2023. In this article, we will conduct a descriptive analysis of pure biodiesel (B100) production and its feedstocks usage.
There are roughly 580 grain buyers in Iowa who post their daily bids on-line (on their own websites and/or on other grain marketing news and information websites).
This month we added a new team member!
The U.S. Energy Information Administration (EIA) published its Monthly Energy Review report on February 23rd, 2023 and its Monthly Biofuels Capacity and Feed Stocks Update Report on February 28th, 2023. In this article, we will conduct a descriptive analysis of pure biodiesel (B100) production and its feedstocks usage.
Iowa is the top producer of corn in the nation and the second largest producer of soybeans, after Illinois...
IMPLAN recently released their newest dataset. Constructed using 2021 data, this dataset represents the most current economic data available at this level of detail.
This month DIS added a new member to the team!
A recent increase in egg prices has everyone talking about it... here's why!
Come celebrate our 15 year anniversary with us!
The RCO model has been and continues to be utilized in many different situations to help our clients have a better understanding of feed rations for major animal species, which has been demonstrated by successfully using it with several satisfied clients.
There are those who say “the market is never wrong” regardless of how current prices relate to historical fundamentals. That could be at play in the current corn and soybean markets.
DIS is celebrating 15 years!
Two types of analysis we frequently do are economic impact studies and economic contribution studies. But what exactly is the difference between an impact and a contribution study?
Biomass-based diesel includes both biodiesel and renewable diesel. Biodiesel and renewable diesel are produced using the same kind of feedstocks (fats, oils, and greases) but have different processing methods.
In 2020, there were 1.3 billion acres of privately held agricultural land in the U.S. Of these acres, 38 million acres, or 2.9%, was held by foreign ownership. Some states have a higher rate of foreign ownership than others.
As we celebrate our 15th year in business here at Decision Innovation Solutions, we truly do look forward to forging new, maintaining current and nurturing long-standing relationships with those with whom we are fortunate to serve.
Iowa has 42 ethanol refineries with 4.6 billion gallons of annual production capacity. In 2021, Iowa ethanol production hit an all-time high of 4.4 billion gallons up from an estimated 3.7 billion gallons of production in 2020. There are plants in all portions of the state with the largest concentration in the northwest quadrant
We've conducted this series report over three years. It started with an abnormal weather events (serious flooding in the main corn planted states) in 2019, in which we discussed how the delays in corn planting process influenced the ethanol gross production margin (GPM) values.
The changes in relative value of the soybean crush.
Here at DIS, we have recently completed an Agribusiness Commodity Flow Study for the Kansas Department of Agriculture. Click to read about the Kansas Commodity Flow Highlights.
The trends in Iowa's Annual Retail Sales of Ethanol Blends.
Welcome Aaron to DIS!
Introducing Cindy to the DIS community!
Decision Innovation Solutions is in need of a Agricultural and Food Systems Statistical Analyst.
Our Decision Innovation Solutions (DIS) team of professional economists and analysts are proud of the independent views and objectivity they bring to every assignment. In some cases, our independent view is sought by clients who are in the process of applying for grants or other types of funding...
The U.S. Census has released the data from the 2020 census. As the map below shows, a significant number of rural areas between the Rocky Mountains and the Appalachian Mountains lost population during the past decade. Much of this population loss occurred even though many of those counties are in states that had net population gains – meaning the population concentrations in metropolitan areas continue to increase...
Compared to recent years, U.S. rainfall data indicate 2021 as one of the driest. A ten-year high for exceptionally dry conditions was achieved in March, April, and May. Furthermore, as of October 26, 2021, 63% of the U.S. was experiencing conditions ranging from abnormally dry to exceptionally dry...
DIS wanted to know how Kades first month has been, so we asked him!
The motivation to retire environmentally sensitive and highly erodible cropland from production is to restore soil quality and improve the overall environment. Higher-income developed countries, such as the U.S., are the proponents and active participants in government programs like the CRP which idles otherwise productive cropland to achieve this. However ...
This article covers the most recent trends in ethanol blended fuel sales in Iowa. Data used comes from annual retail fuel sales data and rack level sales data collected and maintained by the Iowa Department of Revenue (IDR). Sales trends for the following fuel blends will be explored: E0, E10, Registered E15, Flex Fuel E15, E20, and E85.
Decision Innovation Solutions (DIS) has enjoyed its working relationships with numerous state and national commodity organizations. These associations play an important role in advocating for the producers and value-added processors who grow and add value to their commodity. The Missouri Soybean Merchandising Council and Missouri Soybean Association provide an excellent example of the important work it undertakes to promote the soybean industry.
Our Dynamic Flow Analysis™ methodology has been used in various studies for our clients. We show how we used this methodology in the commodity flow study we conducted for biodiesel in Missouri, and how it is being used in Illinois in regard to the potential expansion of local meat processing.
The gross production margin in the ethanol industry commonly represents the difference between the price of corn and the combined sales value of ethanol, and its co-products: distiller's dried grains (DDGs) and distillers corn oil (DCO). The GPM shows the calculated relationship between the value of ethanol and ethanol co-products and the cost of corn in ethanol production. In this article, we will focus on the behavior of GPM during the second half of 2020 and 2021 thus far.
Recent trends experienced within the U.S. as a whole and within the state of Iowa go to show the important, and more prominent, role the agricultural machinery industry plays within the wider agricultural industry and economy.
Established under the 1985 Food Security Act, the Conservation Reserve Program (CRP) is primarily focused on: protecting otherwise arable land from erosion, improving water quality, and protecting wildlife habitats. However, land idling due to the CRP has resulted in a reduction in agricultural production and impacted the United States' ability to contribute to the increasing global demand.
The Minnesota AgriGrowth Council is a nonprofit, nonpartisan member organization representing the agriculture and food industry. In 2020 we worked with Agrigrowth and collaborated with 24 individual sponsor groups to produce the Minnesota Agriculture & Forestry Economic Contribution Study.
One of the very real questions for agricultural and food policy regarding GHG emissions is, “Do we want to cut emissions by cutting crop production and food supplies? Or should the emphasis be on continued improvements in factor use efficiency, such as improved N use efficiency in the major crops while continuing to increase overall agricultural output and increased food, feed and renewable fuel production?”
Oregon Clean Fuels Program (Oregon CFP) was launched in 2016 by the Oregon Department of Environmental Quality. The program intends to reduce the amount of greenhouse gases generated during production, processing, transportation, and consumption (i.e., life cycle) of fuels used in the Oregon transportation sector. According to Oregon Department of Energy, the transportation sector accounts for about one-third of the state energy use.
A look at the pace and destination markets for corn exports from the United States. Brief discussions on why shifts have happened this year and policy in a few market destinations.
Identifying, quantifying and maintaining historical relationships among variables allows DIS to develop projections that provide our clients decision-making tools that help them understand how their risk appetite corresponds to certain levels of quantified risk associated with various defined scenarios.
This blog article looks at the details surrounding forecast 2020 U.S. net farm income, how it compares to other years from 2013-2019 as well as what the drivers of net farm income are this year. A look at Iowa compared to the U.S.
This is the last of my updates on aquaculture. I have been sharing my observations on the status and trends of the industry. For my final update I would like to focus the current environment and opportunities for U.S. aquaculture.
Every five years since 1980, the USDA updates the dietary guidelines which are primarily used by health professionals and nutritionists for the general public aged two and above. These guidelines inform nutrition programs, health policies, and more. Much of the guidelines have remained the same over the years, such as recommending increasing consumption of vegetables, fruits, legumes, whole grains, low- or non-fat dairy, lean meat, and poultry.
According to the California Air Resources Board, the Low Carbon Fuel Standard (LCFS) is formulated to lower the carbon intensity (CI) of California's transportation fuel pool and to offer a growing selection of low-carbon and renewable alternatives. CI is measured in terms of grams of carbon dioxide (CO2) equivalent per megajoule of energy (gCO2e per MJ). The program has set a declining annual target in the CI of California's transportation fuel pool. The 2020 target is a 7.5% reduction relative
In the past three months, we have been through a unique and difficult situation due to the COVID-19 virus. Because of the pandemic, the demand for gasoline dropped dramatically, which reached the lowest demand within a couple of decades. This led to the demand for ethanol decreasing significantly. We analyzed and updated this series article that was previously done in the summer of 2019, which talked about how the Iowa ethanol gross production margin (GPM) behaved.
There is likely to be some slaughter backlog yet in July 2020, but much of that backlog should be worked through by Labor Day. The amount of slaughter-ready hogs increases for much of September, October, and much of November. Nevertheless, the number of backlogged hogs in the third and fourth quarters of 2020 are expected to be less than 30% of the levels seen in the second quarter of 2020.
The U.S. is the largest producer of poultry meat and one of the largest producers of eggs in the world. The level of domestic consumption of poultry meat (turkey, broilers, and other chicken) is very high. Although the total poultry meat consumption is less than the total red meat consumption in the U.S., it is considerably higher than either pork or beef consumption individually.
I recently had the opportunity to attend a virtual conference sponsored by the U.S. Soybean Export Council (USSEC) on the 20th of May. According to their reports, “approximately 900 global customers and soybean industry representatives from 60 countries” attended the conference. The subject of the conference was “COVID-19 and the Implications to Aquaculture”.
The spread of COVID-19 has created disruptions in livestock slaughter facilities. At the first of April, hog slaughter facilities began to operate at less than capacity. The first hog plant to close was the Tyson plant at Columbus Junction, IA which closed on April 6, 2020. It was closed for two weeks.
One honeybee only makes 1/12 a teaspoon of honey in its lifetime, but the honeybees' products and service as a pollinator are all but minuscule. Honeybees are responsible for pollinating over 90 commercial U.S. crops including almonds.
Greetings! Thankfully, the restrictions that have come with the COVID-19 challenge are beginning to thaw, at least here in Iowa. And…thanks to an exceptional team and great clients the steady drumbeat of projects continues here at DIS.
Recently, a question that drew the attention of many farmers across the U.S. was regarding Maximum Residual Limits (MRLs) and its abidance of Good Agricultural Practices (GAP). An MRL is the maximum amount of pesticide left as a residue in commodity or food items.
The spread of COVID-19 has created disruptions in livestock slaughter facilities. At the first of April, hog slaughter facilities began to operate at less than capacity.
It is hard to believe that I have been a member of the DIS team for nearly four months now! A lot has changed since the beginning of the spring semester when I started my internship, but I am grateful to be able to continue my work and research remotely for the time being.
As promised in my last blog I will be writing a few blogs about Aquaculture in the U.S. as I continue my research for one of our market analytics projects. The last blog provided an overview of changes in U.S. Aquaculture over the five-year period between the 2013 USDA Census of Aquaculture and the 2018 USDA Census of Aquaculture. This focus of this blog and others will be on individual species of seafood raised in the U.S.
As a general rule, pets are considered “family” in the United States. More than 100 million U.S. families have a pet at home. For the one-year time period, June 2018 to May 2019, pet owners spent more than $30 billion on 9.8 million tons of pet food products.
U.S. pork muscle cut export volume was up 9% to 2.176 million metric tons (MT) in 2019 compared with 2018 (see Figure 1). 2019 U.S. pork muscle cut exports were boosted by large shipments to China despite high retaliatory tariffs on U.S. pork. China's drastic swine herd reduction due to the African Swine Fever (ASF) has caused lower Chinese pork production and considerably higher domestic pork prices.
In March of 2020 I had the privilege to be one of the leaders of the Iowa Farm Bureau Federation 2020 Market Study Tour to Brazil. I serve as a consultant to Iowa Farm Bureau through Decision Innovation Solutions. Twenty-three of us travels to the heart of the Amazon and other areas along the Amazon River and in Mato Grosso to look at agriculture, transportation and grain handling infrastructure.
Wind energy has been harnessed for thousands of years. Early users of wind energy propelled their boats, grinded grain, pumped water and managed bodies of water creatively using wind power. In 1850, Daniel Halladay and John Burnham patented the first commercial windmill and established the first wind engine company in the U.S. How has wind energy harvesting changed since 1850? Today, the main use for wind energy is to generate electricity
According to the January 2020 USDA Cattle on Feed Report, the total inventory of U.S. cattle on feed in 1,000+ capacity feedlots was almost 12 million head, up 2% from the previous year.
Our Decision Innovation Solutions team usually approaches complex projects by assigning specific segments of a project to individual team members. I have had the pleasure of being assigned to the Aquaculture segment of the animal food production industry. One of the tools I have used is the USDA Census of Aquaculture. This census is conducted every 5 years in conjunction with the USDA Census of Agriculture.
We had unnormal weather events throughout 2019 April and May in the Midwest and Iowa that led to very significant delays in the corn planting process, which was one of the main reasons that the July corn future prices changed abnormally.
As we wrap up 2019, we look ahead to year 2020! We will be wrapping up our American Feed Industry Association Social Media Campaign in January and after that, we will be starting our Missouri Commodity Flow and Infrastructure Social Media Campaign.
2018 ARC and PLC payments were issued in early October. Very few Iowa counties received any ARC-CO payments again this year. Final 2018/19 MYA prices were $3.61 for corn and $8.48 for soybeans, which resulted in a final 2018 PLC payment rate of $0.09 for corn but $0 for soybeans.
Milk has been a staple beverage in American diets for decades. But has milk consumption changed in recent years? With the help of technology and automation in the dairy industry, U.S. milk production more than doubled since 1930.
I recently read an article in Morning AgClips regarding a county in Missouri attaining the designation of “Agri-Ready”. Morning AgClips is a news service that I use to stay informed about agricultural activity in nine states. I also have a long-time connection to Nebraska being born in Wayne County and raised on a farm in Platte County.
Agriculture in Iowa is constantly changing. Every 5 years we get a snapshot of those changes with the Census of Agriculture by USDA. Earlier this year, USDA released the data from the 2017 Census of Agriculture. Here are 5 insights on Iowa Agriculture from that data.
According to the October 28th USDA Crop Progress report, Iowa still only had 26% of corn harvested and 66% of soybeans, which are both well behind the 5-year averages of 53% and 80%, respectively. Last year was an exceptionally wet fall with many rainfall records in September and October across Iowa, but this year has been another extremely wet fall which is causing harvest delays.
As in the last article we talked about the common modes of transportation for agricultural commodities in the State of Missouri are truck, rail, ship, and multiple mode, with descending order, which multiple mode is defined as multiple modes and by parcel delivery services, U.S. Postal Service, or couriers by Freight Analysis Framework.
2019 has been a very busy, productive year for the DIS team. From long-term additions to the team, an intense, short need from six interns and a bit of churn, we have had a great ¾ of 2019. At any one time, the DIS team could be working on 20-25 different projects – some big, some small, some short-term, some long-term. I often say that getting laid off in 2009, while difficult at the time, has turned out to be a rather enjoyable ride in the ten years since I've been working with the company. I
Through Decision Innovation Solutions, I provide consulting services on international programs and activities to the Iowa Farm Bureau Federation. One of my recent activities involved a trade mission to China and Taiwan.
What do rope, shoes, plastics, food and beverages, animal feed, auto parts, fuel, sails, textiles, paper, canvas, building supplies, body lotions and salves have in common? They can all be made with the fiber, seeds or oil of hemp.
Many midwestern states, like Iowa, Missouri, Illinois, etc., are reliant upon infrastructure to move agricultural and agricultural related commodities to markets. There are thousands of miles of state highways and paved county highways that are integral to the farm and grain handling facilities.
Have you ever wondered what your members are thinking and talking about on social media? Or what trends are occurring in different groups of people all across the country? The DIS Social Cultivator (DISSC®) allows you to gain and leverage deeper insights on your membership or other influential audiences with the added benefit of understanding what trends and topics they are talking about.
In the past year, Decision Innovation Solutions has completed research for the United Soybean Board regarding protein sources in animal diets. In this research, DIS completed an analysis for every state in regards to how soybean meal (SBM) is used for feed and consumed in the United States
“Planting progress has been slowed by relatively frequent and relatively heavy rains throughout April and May.”, said DIS chief economist, David Miller, on May 24, 2019. (Blog is originally posted here) These abnormal weather events affected a number of rivers with flooding in the Midwest area, which led to delays in the corn planting process.
In the latest USDA's WASDE report posted July 11, 2019, the 2019/20 soybean production forecast was down 305 million bushels to 3.845 billion bushels month-over-month (Figure 1). This forecast reflected lower planted and harvested area indicated in the June 28, 2019 Acreage report and lower expected yields. Soybean planted acres for 2019 was estimated at 80.0 million acres, down 4.6 million acres from last month. This would be the lowest acreage since 2013; however, this estimate might change.
The US Energy Information Administration (EIA) published Monthly Biodiesel Production Report on June 28th. In this article, we will conduct a descriptive analysis of pure biodiesel (B100) production and its feedstocks usage back to 2014. EIA reported 152 million gallons pure biodiesel was produced in this April, which was 11 million gallons more compared with March 2019, and 9 million gallons more compared with April 2018.
Almost every day you will hear or read information that indicates a significant segment of our population does not understand or appreciate the contribution of agriculture in their lives. How many jobs does agriculture support?
The wet spring of 2019 with rains and flooding has kept many fields unplanted across Iowa. With the final planting dates in the state of May 31 for corn for grain and June 15 for soybeans, the provisions of the Prevented and Late Planting aspects of crop insurance are important considerations for farmers faced with these decisions.
Until this marketing year, China had been the main foreign market for U.S. soybeans. However, Brazil has taken the lead as China's main soybean trading partner. The United States percent share of China's total imports increased from 22.1 percent in 2012/13 marketing year (MY) to 36.8 percent in 2016/17, however the share declined to 28.7 percent in 2017/18.
In this short article, we look at pure biodiesel production for 2019. Pure or traditional biodiesel is known as Fatty Acid Methyl Ester (FAME). Renewable diesel (also known as Hydrotreated Vegetable Oil or HVO) and FAME often are confused.
Worldwide, the per capita consumption of fish is increasing. Some of that increase is due to population growth and some growth is due to rising incomes.
Iowa is the number two soybean producer in the country after Illinois. In 2018/19 Iowa produced 565 million bushels of soybeans, which was about 12.4 percent of U.S. soybean production (4.544 billion bushels). U.S. soybean production is mainly destined for crush plants in the domestic market or for exports.
It has been quite wet across a wide swath of the US corn production area this year. Planting progress has been slowed by relatively frequent and relatively heavy rains throughout April and May. Combined with cooler than normal weather in April and May and flooding along a number of rivers in the Midwest, it has been difficult, to say the least, to get corn planted.
Farmers face challenging market prices in 2019 and diminished (or negative) returns due to costs of production that are not decreasing as rapidly as the projected Iowa crop values this year.
Within the past twenty years, the flow of information has exponentially increased, largely due to advancements in technology and adoption of social media. The speed at which issues are first manifested to when they are noticed on a large scale has increased.
In this month's report, we look at the ethanol crush spread. Ethanol crush spread is a dollar value calculated as the difference between the combined sales values of ethanol, distillers dried grains with solubles (DDGS) and corn distillers oil (CDO) and the cost of corn in producing ethanol.
Spring weather conditions often allow only a small window with ideal planting conditions, but when that window is open, Iowa farmers respond.
This report presents the latest information on U.S. ethanol production and exports to leading destinations and highlights Iowa's ethanol industry and the importance of this industry in supporting corn prices.
In this month's article, we look at pure biodiesel production and its feedstock usage for 2018. A previous update covering pure biodiesel production can be found in the April 2018 Report from the AgMRC Renewable Energy Report.
From our previous article, we compared the attitudes from the different perspectives of American and Chinese regard to the trade war (trade talks) since March of 2018. After the last round negotiation on February 15th, 2019, President Trump has delayed tariffs scheduled for March 1st on Chinese goods because they are “moving along nicely with Trade discussions”, said in his tweet.
One of the roles I fill is the International Programs Consultant for the Iowa Farm Bureau Federation. In that role, I support IFBF in their international trade relationships. Recently, IFBF participated in a meat trade mission to Colombia to help create new opportunities for Iowa meat exports to Colombia.
U.S. ethanol production was at 1.028 million barrels per day for the week ending February 22, 2019 according to the most recent Weekly Ethanol Plant Production report from the Energy Information Administration (EIA).
My favorite breakfasts (yes, I have more than one) always include eggs in some form. If you have breakfast at Iowa Machine Shed here in Urbandale and you order an entrée with eggs you will get an extra egg just for telling your server “I Love Eggs”.
The trade war (trade talks) between the US and China started in March of 2018. Intensity of the trade talks increased until the G-20 summit in Argentina on December 1st, 2018. After the two presidents met, they announced a moratorium in regard to trade issues like tariffs on certain products, intellectual property, market access, etc. and set a three-month negotiation period.
As a Marketing-Communications Intern at Decision Innovation Solutions, I have had the opportunity to take on many different tasks regarding our social media channels. Most recently, I have started to create a social media campaign for the economic research and contribution DIS did for the American Feed Industry Association (AFIA) and the Institute for Feed Education & Research (IFEEDER).
2018 saw decreased hog prices received for most months compared to 2017. This was partially due to trade disputes that have remained.
In this short report, we look at the amount of corn and sorghum crushed for fuel ethanol production. This data analysis work is based on the Grain Crushing and Co-Products Production report published by the USDA National Agricultural Statistics Service (USDA-NASS).
In this series of articles, we studied the relationship between the crop progress Good and Excellent condition ratings and the corn and soybean yields for the State of Iowa from 1986 to 2018. The final condition rating is a good predictor to forecast the Trend Adjusted (TA) Yield for both corn and soybeans; to have more details check the first article of the series.
Our last article has emphasized that a good understanding of corn and soybean yields are important for the State of Iowa. So, we conducted a series of studies to analyze how to utilize crop condition ratings for forecasting Iowa corn and soybean yield. From the last article we know using the Final Crop Good and Excellent Condition Ratings to forecast Corn and Soybean Yield for the State of Iowa is a good approach.
US corn and soybean production in 2018 is estimated to be 14.6 billion bushels and 4.6 billion bushels, respectively. Iowa is ranked first in the United States for corn production and second in soybean production according to the USDA state ranking report published in May 2018.
With the upcoming close of a successful 2018, we recognize that we are undoubtedly blessed as we prepare to look back at the many great things that happened here at Decision Innovation Solutions this past year.
The last Crop Progress report released by USDA on November 26, 2018, indicated the top 18 corn and soybeans producing states were 90 percent and 91 percent harvested, respectively. The World Agricultural Supply and Demand Estimates (WASDE) report released by USDA on December 10, 2018, projected 2018/19 corn production at 14.626 billion bushels, which if realized, would be the second largest after 2016 (15.148 billion bushels). In addition, USDA projected soybean production this marketing year ma
The Alabama Hurricane Michael was a Category 4 storm that made landfall on October 10, 2018. Due to 155 miles per hour winds, Hurricane Michael was the strongest hurricane to hit the continental United States since 2004. Eight counties in southeastern Alabama were specifically impacted; Barbour, Coffee, Covington, Dale, Geneva, Henry, Houston, and Russell.
Iowa fertilizer prices are down significantly from 2012, however fertilizer prices have been on the rise since late 2017. In 2012, urea prices were near $800/ton, but have since declined to $366/ton as of November 2018. Liquid nitrogen 32% has averaged about $344/ton from 2012-2018, but is currently $258/ton.
Over the past 4 years, our team at Decision Innovation Solutions has had the opportunity to work with all levels of the livestock, poultry and aquaculture production industry.
USDA's November 8, 2018, edition of the World Agricultural Supply and Demand Estimates Report (WASDE) contains the latest forecast for the 2018/19 soybean marketing year
Yellow grease (YG) and choice white grease (CWG) are marginal value commodities. YG can be many products such as used cooking oil, lower quality fat from slaughter houses and rendering plants. CWG is mainly rendered porcine fat. Both YG and CWG are used to produce livestock and poultry feed as a fat source. They are also used in biodiesel production as feedstocks.
We are now a little over halfway through October and Iowa corn harvest progress is only at 17% and soybean harvest progress is 19% complete, which are both behind the 5-year averages of 24% and 51%, respectively. Many are wondering, how does this fall rainfall compare to other years?
2017 ARC-CO payments were issued by USDA's Farm Service Agency on October 4, 2018. As shown on the maps below, Iowa counties received final payment rates ranging from $6.48 to $64.39 per acre for corn and $0.42 to $49.96 per acre for soybeans.
What began as a single project for a national commodity organization has now officially blossomed into four repeats of that project along with many others which have spun off that original project in 2014.
By the end of the second quarter of 2018, Iowa added 4 MW of new wind power capacity for a total of 7,312 MW. Based on the newest data from the U.S. Department of Energy, in terms of wind power capacity installed, Iowa is the third in the nation after Texas and Oklahoma.
U.S. pork muscle cut export volume increased 6 percent to 1.165 million metric tons (MT) during the first seven months of 2018 compared with the same period last year.
Decision Innovation Solutions (DIS) has the opportunity to work with a wide variety of clients who all have their own unique needs. The team of professionals at DIS bring a wide range of skills and experience into each client's project.
Nowadays, more and more people pay attention to data and information and how to use them in a proper way. Analyzing data includes not only collecting raw data but also how to convert the numbers to inform a company's strategy and decision making. A small improvement in data analysis can lead to a big financial return for companies.
In Iowa, the two largest weeks for harvest progress were in 1993 and 2013, when 30% of Iowa's corn crop was harvested in one week. Since 1990, every year has had a week where at least 15% of the Iowa corn crop was harvested, and 23 out of those 28 years have had a week with 20% or more harvested in one week's worth of time.
Decision Innovation Solutions end of summer internship experience blog
For the first dataset, gasoline's price is higher than ethanol price, the correlation between daily ethanol price and gasoline price
The Chinese government indicated that the expected fuel ethanol production will be 4 million Metric tons (1.339 billion gallons) per year during the 13th Five-Year Plan. In 2017, ethanol production stands for 2.6 million tons (0.871 billion gallons) per year, increased 0.5 million tons (0.167 billion gallons) per year, from 2.1 million tons (0.703 billion gallons) in 2016.
According to the July 30th USDA/NASS Iowa Crop Progress & Condition report, the Iowa corn crop is rated 78% Good/Excellent, 16% Fair, and 6% Poor/Very Poor. 96% of the Iowa corn crop is currently silking, and 31% has hit the dough stage.
Corn has been grown across Iowa for more than 150 years, more than 30,000 kernels are planted per acre, and state-average corn yields can be close to 200 bushels per acre in a good year and near 300 bushels per acres on high CSR land. Additionally, what used to take days to plant can now be done in minutes
Although 2018/19 corn exports are forecast down 175 million year-over-year, exports are expected to continue a strong pace in 2018/19 marketing with a forecast volume of 2.225 billion bushels. The forecast was increased by 125 million bushels from June 2018 .
Expectation for losses in the hog industry were estimated to be more than $25 per head by the last quarter of 2018 and the first quarter of 2019, in the report from the University of Illinois. Additionally, profit per head in 2017 was, on average, $4 per head, the expectation for 2018 is that number falling to losses of $11 per head, and then further to $14 per head in 2019. With trade deals in flux, and with the export market representing more than 20 percent of US pork production any major cha
From 2001-2017, Iowa averaged about eight Chapter 12 bankruptcy filings per year. In 2017, that number rose to a record high during this time frame of 18 filed. As you can see below, the U.S. and Iowa trends in Chapter 12 bankruptcy filings follow a very similar pattern, with both seeing spikes around 2003 and 2010. 2013 and 2014 bankruptcies were lower for both the U.S. and Iowa, however both have seen much higher bankruptcy filing numbers the past three years likely due to declining cash recei
At this point the US is a net importer of seafood. However, there are a lot of things happening in breeding, feed composition, consumer trends and production technology that will support future growth in USA production of seafood.
Crop conditions according to the June 4th USDA/NASS Crop Progress report.
Iowa Crop Progress Reported Weekly. 5/27/2018
The 2018 average cash rental rates for corn and soybean acres ranged from $126/acre in Clarke County to $290 in Grundy County according to the ISU Cash Rental Rates Survey.
Planting Progress Updated Weekly. 5/27/2018
Stronger feed trial experimental design and analysis can give the competitive edge necessary to remain ahead, and provide the best inputs to producers and by default the highest quality products to the consumers of animal products.
With a very cold wet spring 2018 corn and osybean planting has experienced some delays. However, if you give farmers a small window of opportunity between the cold wet days they can get a lot done in a short period of time. See how this has played out in the past.
Data on the industry with the fourth largest sales per farm number is scarce, why?
Over 20 percent of U.S. farm products by value are exported each year, making trade a key component for U.S. agricultural sustainability and growth.
There has been a lot of talk on tariffs during the month of March, however, the specifics of what has been happening is still unfolding. The goal of this article is to shed light on how these decisions have been unfolding.
A key tool we've found useful in helping our clients get the biggest “bang” for their outreach “buck” has been the calculation of a “propensity to vote” (PV) score.
Where are the top markets? What are we exporting to these countries?
The Conservation Reserve Program (CRP) began in 1985 as part of the Food Security Act. It is a voluntary program that provides the opportunity for agricultural producers to contract their land into conservation protection for a specified time and at a compensation rate that is fixed for the period of the contract at the time of enrollment.
Nitrogen fertilizer is an important input in Iowa, the leading state in corn production. Due to the positive correlation ammonia has with corn and natural gas prices, many question whether the decline in ammonia prices is enough to reflect the lower corn prices and natural gas prices.
According to the latest World Agricultural Supply and Demand Estimates Report (WASDE) published by USDA on January 12, 2018, 2017/18 U.S. soybean production is estimated at 4.392 billion bushels, down 33 million bushels compared with the previous month due to lower yields, but up 96 million bushels from the 2016/17 estimate (4.296 billion bushels).
The United States has competitive advantage in crop and animal production over many other locations around the planet starting from the soil under our feet. However, in some cases other countries are able to produce ag-commodities more efficiently than the U.S. Therefore, sharing in the world food production burden is made possible with trade.
According to the USDA/NASS Acreage Report, 93% of corn acres and 94% of soybean acres in Iowa were planted with a GE (genetically engineered) variety in 2017.
Soybean oil is the most dominant edible oil in the U.S. domestic fats and oils market. Relative abundant supply and cheaper soybean oil are the main reasons behind its dominance in local markets. Approximately 88 percent of total soybean oil production is domestically utilized with the remaining 12 percent exported.
China is the fourth largest producer and consumer of ethanol after the United States, Brazil, and the European Union. China's ethanol gasoline blend rate averaged 2.6 percent from 2008 to 2016, with ethanol consumption ranging from 594 million gallons in 2008 to 1.010 billion gallons in 2016.
U.S. livestock and poultry producers have typically relied on soybean meal (SBM) as a valuable and consistent source of protein in their rations. The inclusion rates for SBM varies by species. Except for dairy cattle, and to a certain extent beef cattle, SBM is the preferred source of protein.
The USDA released the October report of the World Agricultural Supply and Demand Estimates (WASDE, October 12, 2017), forecasting higher 2017/18 corn production, increased corn use for both feed and residual and food, seed and industrial (FSI) (excluding corn for ethanol use).
2016 ARC-CO payments have been issued by the FSA. As shown on the map, counties in Iowa will receive a gross payment amount ranging from $0 to $85 for corn acres, and $0 to $33 for soybean acres.
Recently the Trump Administration has begun to discuss and prepare to withdrawal from the Free Trade Agreement the U.S. has with South Korea. With many of the trade agreements now coming to the forefront of U.S. trade, it is important to understand the role that these countries play in supporting our agricultural production both in Iowa and across the U.S.
The 2017 average Iowa cropland cash rent by county as reported by USDA/NASS was $231/acre, down $4/acre from last year. The county averages ranged from $144/acre in Lucas County to $273/acre in Benton County.
The latest (August 30, 2017) and second USDA forecasts for the 2017 calendar year for U.S. net cash income (gross cash income minus cash expenses) and U.S. net farm income (total gross income minus total expenses), indicate an increase for both measures compared with 2016 estimates. Net cash income is forecast up 12.6 percent to $100.4 billion year over year, whereas net farm income is expected to grow by $1.9 billion (3.1 percent) to $63.4 billion compared with last 2016's estimate ($61.5 bil
The U.S. beef export volume so far (January to June 2017) is the second largest after the record high volume of 605,835 MT CWE in 2011. June 2017 registered the largest exports of the year with 108,230 MT CWE. Exports during June were up 12% year over year and 5.5% from the previous month.
What can happen in ten years? Well, from personal experience, a family can move to Iowa from a place that has things called mountains with one child and have five by the time the decade's up. They could visit the Iowa State Fair ten, faithful times and come to respect the power of thunderstorms and the amount of water that can come from the sky. They could also learn that fireflies are indeed real and that agriculture is awesome everywhere.
Ten years ago two partners formed a new company to leverage their financial modeling and decision support skills. Sterling Liddell and Spence Parkinson were both working in the Research and Commodities department at the Iowa Farm Bureau Federation (IFBF). They had developed some highly sophisticated methods for financial modeling and risk analysis.
USDA data indicates that from January to June 2017 the United States exported 22.8 percent of its pork production compared with 20.9 percent during the same period last year. U.S. total pork production rose 2.9 percent from 5.531 million MT CWE during the first half of 2016 to 5.691 million MT CWE in 2017 (January to June).
Agriculture research has driven major increases in input/output margins since the late 1940's. These increases have been clear to many farmers strictly looking at crop yields and revenue statements. However, it is economic data that provides quantifiable evidence of the value of scientific and technological advancements in agriculture.
The lack of rain has caused Iowa's corn crop to continue to decline. As of the August 7th USDA/NASS Crop Progress and Condition Report, Iowa's corn crop was rated 64% Good/Excellent, 26% Fair, and 10% Poor/Very Poor. 95% of Iowa's corn crop is currently silking, and 42% is in the dough stage.
Based on the most recent data on world egg production available from FAOSTAT, Statistic Division of the Food and Agriculture Organization, in 2014 the United States was the second largest egg producer (100.879 billion eggs) after China.
The water quality trend is correlated with many factors, such as weather conditions, land use, and government policy. In this article, we examined nitrate concentration levels (mg/l) in the Raccoon River in Iowa from 1980 to 2015. We wanted to find out the trend in nitrate concentration in the river and the factors driving the variation of nitrate concentrations. Recent water quality literature pointed out precipitation, baseflow, and soybean cultivation have a strong influence on nitrate concen
The Low Carbon Fuel Standard (LCFS) is a regulatory framework adopted by California to reduce greenhouse gas (GHG) emissions in the state. The program encourages the use and production of a variety of low-carbon and renewable alternatives such ethanol, biodiesel and renewable diesel, which contribute to the reduction of greenhouse gas emissions and replace higher carbon petroleum-based fuels.
The U.S. is the number one broiler producer in the world followed by Brazil, China, and the European Union (EU). In 2016, U.S. production of broiler meat was up 1.6% to 18.262 million metric tons ready-to-cook equivalent (MT RTC) compared with 2015 (17.971 million MT RTC) reaching a new record high.
This time of the year the fields in Iowa begin to turn into seas of green corn and soybeans. In the last few years some Iowans, in the familiar pioneer spirit have begun bringing the sea to consumers in Iowa and surrounding states. Aquaculture appears to be a growing endeavor in Iowa and neighboring states.
A year ago I found a farm that was participating in a worldwide cooperative organic farming program. I worked and stayed on the farm for nearly a week where I would assist on all the farm activities, managing irrigation, manure application, as well as watering and feeding animals. In return, the farm provided a place to stay and farm fresh food to eat, all provided free of charge (other than my labor).
You don't need to be an Iowa native to know our land is draped with millions of acres of crops. Roughly 30 million acres in Iowa are allocated for crop production. Being one of the top corn producers in the nation has many positive effects on our economy. In order to maintain successful production, we rely on the help of pollinators like honeybees.
Brazil's government scandal brought its currency, the Real, down approximately 7 percent within the last 24 hours. This large drop in the Brazil's currency has made U.S. soybean uncompetitive and less attractive in the international soybean market.
I have a Google alert set for Economic Contribution and another for Economic Impact. This gives me a great overview of the plethora of studies commissioned by clubs, resorts, businesses, counties, states and non-profits all seeking to justify their contribution to society.
The Decision Innovation Solutions (DIS) slogan is, “Bridging Your Information Research Needs”. What does this mean? There is a common business term, “innovate or die”. At DIS we understand this. Back in 2007, Spence Parkinson started the company with his partner Sterling Liddell, a co-worker at Iowa Farm Bureau.
Supported by economic growth, increasing household income, constrained farmland area, and a diversified diet that includes more animal protein, dairy products, and other consumer oriented products, China agricultural imports expanded since the beginning of the last decade.
Pure or traditional biodiesel is known as Fatty Acid Methyl Ester (FAME) and renewable diesel (also known as Hydrotreated Vegetable Oil or HVO) often are confused. They are both made from organic biomass, but are different products due to their production process and quality attributes.
In 2016, Canada was the second largest market for U.S. agricultural products with a value of $20.5 billion. The leading market destination in 2016 was China, with $21.4 billion worth of U.S. agricultural exports. The export composition of these two markets is different, with U.S. exports to China consisting mainly of bulk commodities, particularly U.S. soybeans.
I was reading a Reuters Media article dated March 15, 2017 entitled “New, safer U.S. rail cars gather dust even as ethanol trains grow longer”. The article referred to the recent spill of ethanol from a unit train derailment in northwest Iowa.
We recently put together a brief article on the actuarial performance of corn and soybean crop insurance premiums in Iowa from 2001-2015. This article was patterned after work done by Carl Zulauf and Gary Schnitkey from Farmdoc Daily in Illinois.
In 2016, Mexico was the third largest value market for U.S. agricultural products, after China and Canada. The 2016 value of U.S. agricultural exports to Mexico was up 0.8% to $17.9 billion from 2015, but down 7.9% compared with the record value in 2014 ($19.5 billion).
The recently released NASS harvested yields can be used to estimate the 2016 Agriculture Risk Coverage (ARC) payments planned for payment in the fall. These estimates will likely vary from the final Farm Service Agency (FSA) yields used to calculate the actual payments this fall and should only be used as approximations.
Carl Zulauf and Gary Schnitkey recently published a brief research paper in Farmdoc Daily (FDD) in which they studied the loss ratio of all major insured crops and then individually for each of the four crops. These crops included corn, soybeans, cotton and wheat. Given the national variability in weather, crop insurance purchase patterns (plan, coverage level, etc.) the application of the analysis to Iowa makes sense. This analysis follows.
We have done an analysis to understand the relationship among monthly average ethanol prices versus ethanol ending stocks, corn prices, and gasoline prices. The major finding was that all of three predictors, i.e., ethanol ending stocks, corn prices, and gasoline prices, have statistically significant influences on monthly average ethanol prices.
Most trade agreements are of benefit to agriculture commodity exports, and the Trans-Pacific Partnership (TPP) Agreement was no different. More access to markets previously not available due to high trade restrictions can be beneficial to parties interested in the international commodity markets.
How can economic research and engineering work together toward the common goal of informing funding policies and decisions in order to prioritize limited dollars and maximize return on investment?
Biodiesel production in the United States in 2015 reached a volume of 1.263 billion gallons, declining 1.2% from the 2014 level (1.278 billion gallons) (see Figure 1). Production from January to September 2016 was up 19.7% to 1.128 billion gallons compared with the same period the previous year (0.943 billion gallons).
The average Iowa farmland value in 2016 decreased to about $7,183/acre according to the 2016 Iowa State University Farmland Survey. The average value of farmland in Iowa has been declining since it hit $8,710/acre in 2013, and it is down 5.9% from last year.
According to the most recent Weekly Ethanol Plant Production report from the Energy Information Administration (EIA), U.S. ethanol production reached 1.049 million barrels per day for the week ending January 6th 2017. Correspondingly, weekly ending stocks of fuel ethanol are at 20.009 million barrels as published by EIA's Weekly Supply Estimates report.
Our reason for going to the conference was to report on the contribution of agriculture and forestry to the State of Missouri and each of its counties and federal congressional districts. The presentation I was able to give to the attendees was the culmination of about three months of pleasurable work in which we used many analytical tools...
The Chinese government recently indicated that the expected ethanol production will be 4 million tons (1.2314 billion gallons) per year for the next five years. Current ethanol production in China stands at 2.1 million tons (0.646 billion gallons) per year.
U.S. net cash income (gross cash income minus cash expenses) and U.S. net farm income (total gross income minus total expenses) in the 2016 calendar year are forecast to decline year over in response to low commodity prices. The latest USDA-ERS's Farm Income and Wealth Statistics data published on November 30, 2016, indicates that compared with the previous year, U.S. net cash income is expected to fall 14.6% to $90.1 billion.
Brazil and Argentina play a large role in world corn and soybean markets. Brazil has seen a significant rise in corn production over the past 10 years, and soybean production has also been increasing steadily since about 1996 in both of these countries.
This past summer in-between semesters at Iowa State, I spent my time working as an intern with Decision Innovation Solutions (DIS). Having an internship is a requirement for my major of Agriculture Communications and I was lucky enough to land an internship as the company's Agriculture Communications Intern for 2016.
The Weekly Petroleum Status Report released November 9, 2016 by the U.S. Energy Information Administration (EIA) indicates weekly U.S. refiner and blender net input of fuel ethanol was 923,000 barrels per day for the week ending November 4, 2016. The Weekly Supply Estimates from EIA shows the weekly U.S. product supplied of finished motor gasoline was 9,213,000 barrels per day for the same time period.
U.S. beef exports in August 2016 reached a volume of 75,236 metric tons (MT), increasing both year over year (27.6%) and relative to the previous month (4.9%) (see Figure 1). U.S. beef exports during August 2016 were valued at $480.990 million, up 11.5% and 5.5% relative to the same period last year and the previous month, respectively.
Distillers dried grains with solubles (DDGS) is the main co-product of corn ethanol produced in dry-mill plants. Since 2007, on average, 97.1% of total DDGS production has come from dry-mill ethanol facilities with the remaining 2.9% coming from beverage distilleries. For each bushel of corn (56 pounds) used to produce ethanol, about 17 pounds of distillers grains are manufactured.
Data collection in agriculture has long been a mindset that allows for continuous improvement. With so much data being created on a continuous basis, the thoughts of analyzing that data can be daunting. Thankfully, though, the sophistication of data analytics has kept pace with the rate of increasing data creation and management. Enormous strides in computing and software capacities have taken place at an increasing rate that make it much simpler to take vast amounts of dairy data...
About 22% of the total volume of U.S. production is exported every year making exports an important outlet for U.S. agricultural production. The main U.S. agricultural export products are grains and feeds, soybeans, livestock products, and horticultural products. The top five export destinations for these products are China, Canada, Mexico, Japan, and the European Union.
While Iowa has a high population of hogs being fed for the market, many of the market ready hogs are being transported to processing facilities in other states or, at the very least, long distances to the nearest processing facility.
Solar energy is a renewable energy derived from radiant light and heat from the sun which can be harnessed by using different methods or technologies for several purposes such as generating electricity, heating or cooling spaces in buildings, and heating water for home, commercial, or industrial uses.
In an earlier post, I provided readers some background on who I am, where I grew up, and how a Mountain West farm kid made his way to the Midwest. As I wrote previously, I had the pleasure of working with the Gittins family on their diversified dairy farm in Smithfield, UT during my middle school, high school, and college years. The experiences I had there have in many respects guided my direction since.
Wind has been used as a source of energy since early history when windmills were used to grind grain and pump water. Ever since then we have continued utilizing wind energy, and in 1980 the first large-scale wind farms were built in California. Since then we have seen many advances being made in the technology for wind turbines.
The Trans-Pacific Partnership (TPP) is a free trade agreement (FTA) negotiated among twelve countries: Australia, Canada, Japan, Mexico, New Zealand, Singapore, Peru, Chile, Brunei, Vietnam, Malaysia, and the United States. According to the Office of the United States Trade Representative (USTR), the TPP agreement seeks to bring new and effective market opportunities for American goods and services exports. The benefits of the TPP will occur through a combination of tariff reduction, tariff eli
Have you ever had too much to handle with your current resources? I have – in more ways than one, but trust me, when it comes to managing a growing economic research firm, it's a great challenge to have and certainly not something to dread.
Last November 30, the EPA published its final rulemaking for the 2014-2017 time period of the Renewable Fuel Standard (RFS), which was enacted in 2007. The biodiesel mandate was slightly increased compared to the preliminary proposal released on May 29, 2015. The volumetric requirements for 2014, 2015,...
The latest monthly data from USDA/ERS indicates that U.S. ethanol production in September 2015 was 1.2 billion gallons, declining 4% from the previous month, but increasing 3% from a year ago. U.S. domestic ethanol production during the first nine months of 2015 reached a volume of 11.0...
The latest (December 7, 2015) USDA meat trade data indicates that after five months of continued decline, U.S. pork exports experienced growth during September and October 2015 (see Figure 1). Compared to their corresponding previous month, U.S. pork muscle cut exports rose 6.7% in September and 2.5%...
Did you know that the average cat eats about 0.8 lbs of soybean meal a year? The average dog? They're a different story – they eat about 4.98 lbs of soybean meal a year. Okay, we can all go home now, now that we know this life...
I was looking for a reasonable definition of the word "Analytics". This term is used everywhere in business nowadays and having some background in economics and statistical analysis, I am very curious about the new knowledge that it could add to what I do. Particularly, business analytics...
I am currently a part of the Master of Agribusiness program through Kansas State University. It is a program designed for working professionals, so I am able to take the courses from a distance which allows me to continue my full-time work with Decision Innovation Solutions. This...
I have been working with our team on several projects that required us to learn a lot about animal nutrition for most of the species of animals raised in the US for food as well as companion animals like dogs, cats and horses. We started by developing...
U.S. agricultural exports to China have increased substantially over the last fifteen years. Annual sales to China increased from $1.7 billion in 2000 to $24.2 billion in 2014. From 2012 to 2014, U.S. agricultural exports to China exceeded the sales to Canada, Mexico, and Japan (see Figure...
USDA released its annual Land Values report this week (August 6, 2015). Nationwide, farm real estate value averaged $3,020 per acre for 2015 which is an increase of 2.4 percent from 2014 values. The Southern Plains region shows the sharpest increase of 6.1% while the Corn Belt...
Since the beginning of 2015, Highly Pathogenic Avian Influenza (HPAI) has resulted in the loss of more than thirty-eight million layers and pullets in the U.S. from infection or depopulation due to exposure to the virus. Layer operations affected by HPAI are in Iowa, Minnesota, Nebraska, Wisconsin,...
Do you know what the following list of acronyms have in common? AMS, APHIS, ARS, CNPP, ERS, FSA, FNS, FSIS, FAS, GIPSA, NAL, NASS, NIFA, NRCS, RMA, RD. That's right, they are all United States Department of Agriculture (USDA) agencies. You can find out more about each...
Avian influenza (HPAI) continues to impact the poultry industry in the U.S., particularly in Iowa. Based on USDA's Animal and Plant Health Inspection Service (USDA/APHIS) data as of June 3, 2015, the total number of birds affected by HPAI was over 46 million birds. More than 65%...
At Decision Innovation Solutions, we utilize the best tools in the market to help our clients make better informed decisions. We help our clients tell the "Story of Agriculture" in their counties, congressional districts, and states (see results here). You can also view a short video of...
At present, the recent outbreak of the bird flu has been found on 58 farms across 13 states in the U.S. The majority of those are located on 31 farms in the top turkey state of Minnesota. The United States Department of Agriculture estimates total birds on...
I LOVE vacuums! You see, I just passed my five-year anniversary with the company and was surprised to find out that I could pick an anniversary gift as an appreciation for my five years of service. What did I pick? A vacuum. No, not the ones you...
Our Executive Director, Spencer Parkinson, and I completed a very interesting and fun project earlier this month. We had the opportunity to work with a great team representing Grinnell, IA, Grinnell College, the Grinnell Area Chamber of Commerce, and POW-I80 (the economic development group...
March 31, 2015 is the deadline for producers to make the final election of program coverage under the current Farm Bill (2014-2018). As this is an irrevocable election for the duration of the current Farm Bill, producers may want to gather as much information as possible pertaining...
After dodging as many snowflakes as possible, witnessing several sliding and wrecked vehicles on I-80, and "ruining" the evening for thirty-five cub scouts for cancelling den meetings (I'm the Cub Master in my local area), our Business Development Manager and I made it to the "Land of...
Distillers corn oil (DCO) is produced at the majority of ethanol plants today. The DCO market was relatively small prior to 2000. However, the production of DCO has increased over the years especially since 2008. The ethanol co-products market was developed beginning in 2008. Main markets for...
I have the privilege of working with a team that shares the guiding principles of placing family first, being honest in all of your relationships, having an unquenchable desire to learn, and a commitment to creating value in everything they do. While I enjoy my official role...
U.S. pork exports have been facing a series of challenges over the last few months that have resulted in reduced volume of exports during August and September. As indicated by the U.S. Meat Export Federation, higher pork prices by the end of July, Russia's pork import ban...
Agriculture is in my blood. Always has been, always will be. Why? Because it's a way of life I have experienced firsthand and have learned to cherish, respect, and appreciate the lessons it teaches. A little about me – I was born to a farm family in...
Some of our recent work is about water quality in Iowa lakes. Iowa has more than 200 lakes spread over diverse geographic areas. The Clean Water Act says that each state, including Iowa, must specify appropriate designated uses to be achieved and protected. The Iowa Department of...
We all have different skills and interests, leading us to have various types of jobs. It takes a balance of all types of people to keep organizations running smoothly - some people are number crunchers while others are more artistic or hands-on. Decision Innovation Solutions specializes in...
A hot topic in Iowa news recently has been the potential gasoline price increases resulting from Magellan Midstream Partners, LP replacing 87 octane with 84 Octane to terminals in Iowa starting this fall. These changes will affect both retailers as well as consumers. The current gasoline options...
When you think of irrigation your first thoughts are probably about the circles of green you see when flying over Midwestern states. Or, if you've driven through Nebraska on Interstate 80 you have a picture in mind of the countless pivots pouring water on tall corn and...
The current dry spell in much of the Midwest raises some challenges the fledgling bio-products industries will face now and in the future. There are still some who believe the biomass material is just "extra" material that has no other potential use. For livestock producers and dairy...
The United States is a large net exporter of corn seed for planting. Seed trade, including that of corn, has been expanding, but its determinants are not well understood. One of the essays of my doctoral dissertation, which was published in the American Journal of Agricultural Economics,...
I recently had a discussion with an individual about what drives the prices of commodities, which was a good discussion, but it helped remind me about why I enjoy and get frustrated with economics and correlations. It also reminded me of the importance of asking better questions,...
We recently concluded a study (forthcoming in the Journal of Environmental Quality) on water quality modeling in the Raccoon River Watershed in Iowa. Intensive agricultural production is a predominant use of a significant portion of the land in the Raccoon River Watershed and is a primary driver...
I recently attended a Biomass Crop Workshop in Creston, IA. I was interested in attending for two reasons. First, our team has developed an application for biomass mapping that takes into account land stewardship and economic factors for converting land use to production of biomass energy crops....
With the spring season upon us, the weather here in Iowa has really begun to warm. With this change in weather, the focus in Iowa and Nebraska agriculture now turns to planting a new crop. With this focus, the events of last year's Missouri River flooding are...
I have the pleasure of traveling around the state speaking to economic development groups. Often times the discussion is about how to attract jobs to a particular region. On a recent trip though the discussion was different, it turned to how to attract people to the region...
Here are a few questions for you: Have you ever wondered how many jobs a new business brings with it when it starts? What happens when a business closes? How much new income comes with a new business? Can a business really bring more jobs to an area than it...
One of our most loyal customers, Feed Energy Company, was recently honored as the runner-up for the Information Technology Innovation Award for their use of one of our custom decision-making tools. The "Nth Load" model is a computational, Dynamic Risk-Based Modelingâ„¢ tool that objectively analyzes large data sets to provide...
With the economy still struggling to regain momentum, the use of resources (i.e., human and capital) continues to be heavily scrutinized to ensure they are put to their best use. Of course, the "best use" of resources can be defined in many ways, but generally what people refer to in...
International markets for U.S agricultural products are often subjected to a wide range of trade barriers such as tariff and non-tariff measures. Though tariffs for agricultural products have been declining over the years under the purview of World Trade Organization (WTO), sanitary and phytosanitary (SPS) barriers have become increasingly more...
All businesses encounter risk. Risk is born out of uncertainty, or not having a perfect knowledge of future events. Risk involves making a choice when you are not certain of the outcome and that the outcome may have a negative effect. Dana Hoag from Colorado State University in his book...
Japan is one of the United States major agricultural goods importers. In fact, the U.S. has been the largest corn and soybean exporter to Japan for many years. The market in Japan for these two commodities has been steadily growing over past decade. Iowa is the largest corn and soybeans...
The Consumer Price Index Data published by the Bureau of Labor Statistics for February 2011 has been making quite a stir in the news the past few days. It states that the index for food rose 0.6 percent in February and 0.5 percent in January. This is a major concern...
"Pork, the Other White Meat" has been around since 1987. For some, this statement has been around longer than they have been alive and for others, they might remember when this ad campaign hit the air waves. The Pork industry has recently released its newest ad campaign of "Pork: Be...
Recently, John Urbanchuk of Cardno Entrix released his annual assessment of the impact of the ethanol industry. In the past Mr. Urbanchuk has done similar work for the state of Iowa where he has come up with similar results. We at Decision Innovation Solutions agree that the ethanol industry, both...
The day has officially arrived to launch the 2011 Northeast Iowa Biomass Asset Map, a project we've been working on with many partners over the last few months. Text to the press release follows: Des Moines, IA, February 10, 2011 - Decision Innovation Solutions (DIS), an economic research company focused...
Stochastic Modeling reduces risk in management decisions by adequately characterizing the variables associated with a project. Find out more next month at the Solutions blog.
This is the first blog post on the Solutions blog for Decision Innovation Solutions. Stop by the Solutions blog for updates, tips and research findings.
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