Given the federal government's current fiscal condition, the newly imposed sequestration of federal spending, mounting federal debt and several years of record high commodity prices, farmers' direct payments are doomed. They are the favorite cost-cutting target of virtually every budgeter who puts pen to paper to produce a fiscal blueprint, including the Senate and House Agriculture Committees, the Senate and House Budget Committees, the Office of Management and Budget and the Senate Democratic leadership in its sequester avoidance plan. Because of the 2012 Farm Bill's one-year extension, direct payments are like a condemned prisoner waiting out his days on death row. They may be terminated this year -- or, like a prisoner getting a repri...
What You Need to Know Today: Cattle futures extended their sharp selloff Friday as weakening cash cattle prices, deteriorating feedlot profitability, and reduced packer demand continued to weigh on the market. The inability of futures to sustain a rally following last week's bullish Cattle on...
As predicted, the Federal Reserve held rates steady at the last meeting before the midterm elections, likely in part because of the election (see WPI 19 October and 22 September). The decision comes at the tail end of a midterm election cycle that has been marked by the two parties campaigning...
Key Takeaways: WPI’s new EU rapeseed crushing margin models point to weaker processing returns over the next four months due to higher rapeseed procurement costs and weaker product values. Statistical forecasts call for German crushing margins to decline from €181/MT to €...
From WPI Consulting
Forecasting developments in production agriculture
On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.