Daily Ag Direction 12/23/24
Good Morning!
Some good and bad news as we approach the end of the year. Of particular interest to producers will be the Farm relief that was passed over the weekend. Simply put, $110 billion in disaster aid was approved as a part of the continuing resolution with $21 billion in ag disaster and $10 billion in farmer aid. The $10 billion is intended to assist farmers in absorbing the effect of lower commodity prices and increased inputs. Seems simple enough I guess. The government is now funded through March 14th as a part of the overall legislation and we got a 1-year extension of the current farm bill. Payments are expected within 90-days direct to producers. It is not clear exactly how USDA will implement the program, but preliminary estimates have payments of Corn $43.80, Soybeans $30.61, Wheat $31.80, Cotton $84.70 and Rice $69.66. These payments are based on 100% of the acres planted and 50% of the acres prevented from being planted in 2024. A payment limit of $125,000 is imposed but if you derive 75% or more of your income from farming/ranching, the limit is $250,000. As with every ad hoc disaster payment, there are limits based on available funding. Again, all of this information is preliminary and is subject to change.
Mar KC Wheat +6.4 @ $5.51
July 25 KC Wheat +6.4 @ $5.67
Mar Corn +0.6 @ $4.47
Dec 25 Corn +0.0 @ $4.38
Jan Beans -3.4 @ $9.71
Nov 25 Beans +0.2 @ $9.87
Mar Feeders +0.300 @ $256.125
Feb Live -0.650 @ $187.750
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
-Trent
