Ag Alarm Sounded to Congress and China Meets Soybean Pledge
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.
**The U.S. chicken industry is on a decades-long winning streak.
Steady growth in consumer demand, coupled with efficiency gains in broiler production have powered the sector’s remarkable growth the past thirty years.
According to a report from CoBank’s Knowledge Exchange, the near-term outlook for broiler production remains exceptionally strong, but opportunities for increasing output are more limited.
Higher capital costs, tight labor availability, and increased local regulation have stalled site expansions.
**In a letter to Congress, ag groups sounded the alarm about the economic crisis in rural America.
The letter describes an existential threat looming over many farms, stating, America’s farmers and ranchers are facing extreme economic pressures that threaten their long-term viability, leaving an alarming number financially underwater.
The letter also says the reality of record-high input costs and rapidly declining and historically low crop prices has culminated in negative farming margins.
**China has purchased about 12 million metric tons of soybeans, according to Reuters, which meets a U.S.-stated pledge to purchase that amount by the end of February.
The 12-million-ton target was met last week after bulk purchases by state buyer Sinograin and state trader COFCO.
Hitting the 12-million-ton target will likely boost trader and exporter confidence that China could also meet the broader goal of at least 25 million tons through 2028.
