Farm Outlook Dims; Trade Tensions Over Brazilian Beef and ScrewWorm Response Grow

Producer sentiment slipped again in June as a Purdue University CME Group Ag Economy Barometer fell six points to 113. The current conditions index dropped to 102 its lowest reading in a year and a half, and the future expectations index slid seven points. High input costs remain the top concern for 47% of farmers, followed by low commodity prices at 23%. Forty-two percent of those said rising costs are limiting any financial improvement this year. Only 12% of producers reported being better off financially than a year ago, and 22% expect conditions to improve over the next 12 months.

Cattle groups are pushing back against the US Trade Representative after a signal that would exempt Brazilian beef from proposed Section 301 tariffs. The tariffs tied to forced labor allegations include a 25% list affecting many countries. Brazil also faces concerns over illegal deforestation. Corn and ethanol groups support tariffs while seed and feedstock industries seek exemptions. Brazilian officials warn broad sanctions could hurt US consumers.

Texas Agriculture Commissioner Sid Miller is urging the Food and Drug Administration to authorize ivermectin in livestock feed as the New World screwworm spreads across Texas. He says feed-based treatment would let producers protect whole herds and help to reach free-ranging wildlife.