U.S. Justice Department asked to investigate fertilizer prices... The Family Farm Action Alliance has requested the Department of Justice to investigate recent fertilizer price spikes. “We are requesting that the Antitrust Division of the Department of Justice (DOJ) examine these troubling trends. We maintain that these corporations are using their monopoly power to raise and lower the price charged to farmers not based on basic supply and demand, but rather on the price the farmer is paid for their commodity crops,” said Joe Maxwell, President Family Farm Action Alliance in this letter.
The Biden administration has pledged to take action on agriculture sector consolidation, which farmers have long said squeezes their profits.
Russian posts annual highest inflation rate since early 2016... Russia’s consumer price index (CPI) increased 8.4% versus year-ago in November – the highest since January 2016. Month-on-month inflation was at 0.96% in November, down from 1.11% in October, data showed.
Despite six interest rate hikes already this year, the Bank of Russia is considering rates up to 100 basis points on Dec. 17, as inflation has surpassed its 4% target more than a year ago and shows little signs of slowing. Russian President Vladimir Putin called for pre-emptive measures to fight inflation, which dents living standards.
Brazil’s real rallies before interest rate decision... Ahead of a widely anticipated interest rate hike by the central bank, Brazil’s real rallied 1.4% on Wednesday after gaining more than 1% in the previous session. Brazil’s central bank was expected to hike its key interest rate by at least 150 basis points to 9.25% in order to curb rising inflation pressures.
Brazil’s currency has dropped about 12% from its 2021 peak due to rising inflation, Covid threats and uncertainty around fiscal stability.
Forecasts into 2022 might have more Brazil interest rates hikes. Economy Minister Paulo Guedes predicted 2022 will be “a tough year” for Brazil amid high inflation and a sharp deceleration in economic growth. However, he dismissed concerns about the country’s fiscal sustainability.
JPMorgan says 2022 to see full global recovery... The end of the Covid pandemic and a full global economic recovery is predicted in 2022 by U.S. investment bank JP Morgan. New vaccines and therapeutics would result in a “strong cyclical recovery, a return of global mobility, and a release of pent-up demand from consumers,” according to the report.
By the end of 2022, Marko Kolanovic, JP Morgan Chief Global Markets Strategist & Co-Head of Global Research, expects the U.S. S&P 500 to rise nearly 8% to 5,050 points, emerging market stocks to surge 18% and 10-year U.S. Treasury yields -- a key driver of global borrowing costs -- to rise to 2.25%.
Biden pledges end to gas-powered federal vehicle purchases by 2035... U.S. President Joe Biden planned to sign an executive order vowing to transition to the acquisition of only zero-emission vehicles by 2035 for the federal vehicle fleet. Biden’s executive order also pledges 100% zero-emission light duty vehicle acquisitions by 2027. The order also targets net-zero emissions from overall federal operations by 2050, including a 65% emissions reduction by 2030.
As of 2019, the U.S. government owned 645,000 vehicles that were driven 4.5 billion miles consuming 375 million gallons of gasoline and diesel fuel, according to the General Services Administration (GSA). Only 3,215 of the federal government fleet were electric vehicles as of July 2020.
USDA expands DMC program for supplemental production, opens 2022 signup... USDA opened signup for the Dairy Margin Coverage (DMC) program and expanded the program to allow dairy producers to better protect their operations by enrolling supplemental production. The signup period runs from Dec. 13 to Feb. 18, 2022. Supplemental DMC will provide $580 million to better help small- and mid-sized dairy operations that have increased production over the years but were not able to enroll the additional production. They will be able to retroactively receive payments for that supplemental production.
Eligible dairy operations with less than 5 million lbs. of established production history may enroll supplemental pounds based upon a formula using 2019 actual milk marketings, which will result in additional payments. Producers will be required to provide FSA with their 2019 Milk Marketing Statement.
Supplemental DMC coverage is applicable to calendar years 2021, 2022 and 2023. Participating dairy operations with supplemental production may receive retroactive supplemental payments for 2021 in addition to payments based on their established production history.
Supplemental DMC will require a revision to a producer’s 2021 DMC contract and must occur before enrollment in DMC for the 2022 program year.
For 2022 DMC enrollment, producers must certify with FSA the operation is commercially marketing milk, sign all required forms and pay the $100 administrative fee.
USDA is also changing the DMC feed cost formula to better reflect the actual cost dairy farmers pay for high-quality alfalfa hay. FSA will calculate payments using 100% premium alfalfa hay rather than 50%.
Producers will be able to revise 2021 DMC contracts and then apply for 2022 DMC by contacting their local USDA Service Center.
