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.
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.
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).
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.
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.
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.
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.
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 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).
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.
