Reuters says some farmers are turning to more natural fertilizers, including manure:
Some livestock and dairy farmers, including those who previously paid to have their animals' waste removed, have found a fertile side business selling it to grain growers. Equipment firms that make manure spreading equipment known as "honeywagons" are also benefiting.
Not only are more U.S. farmers hunting manure supplies for this spring planting season, some cattle feeders that sell waste are sold out through the end of the year, according to industry consultant Allen Kampschnieder.
"Manure is absolutely a hot commodity," said Kampschnieder, who works for Nebraska-based Nutrient Advisors. "We've got waiting lists."
Manure is problematic, however, because runoff can pollute waterways. But demand for honeywagons is so great that farm equipment manufacturers say they are producing them as fast as they can.
To give you an idea of how big the demand is for manure fertilizer today, Iowa usually uses 14 billion gallons of manure a year. This year it may spray 15 billion gallons on fields. That would be enough to cover 108,000 golf courses or fill 280 million bathtubs. It’s a lot of manure.
Why does Biden want to increase farm subsidies? How would it affect farmers?
President Joe Biden’s latest plan to help Ukraine has implications for American farmers to the tune of a half-billion dollars in increased farm subsidies. The president’s goal is to encourage U.S. farmers to increase wheat, corn and soybean production to make up for what Ukraine used to export. Prior to Russia’s invasion, Ukraine produced 10% of the world’s wheat.
But do farmers need that kind of encouragement when commodity prices are already at sky-high levels?
Politico breaks down what the president’s proposal would mean:
Under the Biden administration’s proposal, $100 million would go toward providing a $10-per-acre payment to farmers who plant a soybean crop after a winter wheat crop in 2023. Another $400 million would fund a two-year increase in loan rates for U.S. producers to encourage them to grow more select food commodities, including wheat, rice and oilseeds like soybeans, sunflowers and canola.
The Agriculture Department claims the proposal would help stabilize rising U.S. food prices and provide food for foreign countries in need, by helping American farmers grow 50 percent of the wheat normally exported by Ukraine, among other things. That plan, however, would probably also require the U.S. to step up funding for federal aid programs that buy and ship U.S. commodities abroad. Otherwise, wealthier countries like China would likely buy up the extra supply on the open market.
A White House fact sheet claims new subsidies would make it easier for farmers to get crop insurance and loans that would, for example, help offset the high fertilizer prices that make planting more acres riskier right now.
Farming economists generally are bullish about subsidies but this time have been muted because the incentive proposal is so complicated and there is a good deal of uncertainty about whether farmers need a greater incentive to plant fencerow to fencerow.
Watching the Fed tomorrow: interest rates will rise
The Federal Reserve Board starts meeting today, and tomorrow will announce how much it is increasing interest rates. Wall Street is counting on a half-percent increase. Five to six .25-point hikes are expected before the end of year. There are some predictions of a .75 point increase this time, which would shock the stock market but might be more effective than a yearlong slow move toward the inevitable.
A 50 basis point increase would be the biggest single increase in 20 years.
All of this is an attempt to get inflation under control. It will affect everything from home mortgage rates to credit card interest over time.
The Fed’s goal is to have inflation running no higher than 2% a year, but inflation is now running at 8%. Energy and food prices make 2% a tough target to hit and very low unemployment means employers have to pay workers more, which drives up prices everywhere.
It might be a good time to brush up on your understanding of how the Fed manages the nation’s money supply. The Fed rate (formally called the Federal Funds Rate) is the cost that banks pay the federal treasury for overnight loans. The Fed sets the rate goal but technically it is up to individual lenders to institute the rates. The government can influence what banks charge by controlling the money supply, so it is a bit of a carrot and stick act.
As those rates rise, the banks charge their customers more or less through higher or lower interest on debt. Investopedia explains:
The federal funds rate is one of the most important interest rates in the U.S. economy. That's because it affects monetary and financial conditions, which in turn have a bearing on critical aspects of the broader economy including employment, growth, and inflation.
The rate also influences short-term interest rates, albeit indirectly, for everything from home and auto loans to credit cards, as lenders often set their rates based on the prime lending rate. The prime rate is the rate banks charge their most creditworthy borrowers—a rate that is also influenced by the federal funds rate.
Investors keep a close watch on the federal funds rate. The stock market typically reacts very strongly to changes in the target rate. For example, a small decline in the rate can prompt the market to leap higher as the borrowing costs for companies gets lower. Many stock analysts pay particular attention to statements by members of the FOMC to try to get a sense of where the target rate may be headed.
New York City raises its COVID-19 alert
New York City raised its COVID-19 alert level to medium on Monday, but hospitalizations and deaths have not risen. This is not the emergency that it was two years ago when New York City first raised its COVID-19 alert status, but it is a reminder that the virus is still here and still spreading.
Ice cream shops suffering shortages and price hikes
