Jim Wiesemeyer (wiesemeyer@gmail.com), Washington DC agricultural insider, Virginia, spoke recently about US agriculture. Email him for free daily insights. Jim offered insights on E-15, Aviation fuel, and projections for the US Farm Bill. Jim is optimistic that Congress will pass a US ag farm provision for year-round E-15 Ethanol. While some Congress members are opposed, the majority want this legislation passed. The effect on corn markets may be slow though because it takes time to build new facilities for increased ethanol production. The aviation fuel (45Z) seems to be stalled. It is set to expire soon (2029) but no rules have been made. This would be a boon for USA agriculture if 45Z was a reality. It will stay stalled until a new farm bill is enacted. The 45Z Clean Fuel Production Credit provides a tax incentive for producing low-emission fuels including Sustainable Aviation fuel made from grain. Jim also reported on the USDA crop estimates. Currently the way USDA collects ...

Entering a new year is a time when people look to future possibilities. Farming is changing quickly with artificial intelligence (AI), robotics, and data processing. Another change is how we farm, horizontally versus vertically. Vertical farming is growing crops in stacked vertical layers, often with the use of hydroponics and definitely with a controlled environment. Why the need for vertical farming? Our population is growing about 1% per year and current estimates are that by 2050, the world will need about 50% more food. In the last 40 years, almost 40% of our arable land used for farming has disappeared or is no longer available for farming. Houses, cities, streets, and roads take up a lot of land used to grow crops and food. By 2050, almost 80% of the people will live in urban areas and many of these areas are becoming food deserts without access to quality healthy green vegetables and crops. With vertical farming, crops are now being grown in skyscrapers, warehouses, and even sh...

  Farmers are in a tough spot. Fertilizer prices are spiking and crop prices are not high enough to cover the costs. The bright spots are on the livestock and dairy side with much higher prices and profits. For grain farmers; with a late drought, yields and prices are not high enough to make much money. Usually, farmers benefit from free markets. The USA usually exports about 1 out of every 3 bushel of soybeans produced. A lot of corn is used to make ethanol for fuel but energy prices are moderating and coming down. Farmers need to export excess grain to stay in business. When grain exports decline, grain farm income tends to decline. USA grain farmers are losing market share to other countries or for political purposes (countries like China) are not buying our grain commodities. Even worse, many countries (especially European markets) have agricultural subsidies that prevent our grain from being sold and exported overseas. The average subsidy overseas is about 1.3% of Gross Nati...