Latest News From Ag Supply Chain

Grain shipments on some railroads could stop as early as Wednesday, two days ahead of a possible rail strike. A rail stoppage is growing more likely as the country’s main rail unions remain at odds with rail companies.

This balance of supply and demand was difficult, resulted in a learning curve, but also brought strong weed control results and strengthened farmers’ approaches to weed resistance.

From a train derailment outside Hereford, Texas, to growing concerns about a possible labor strike in mid-September, rail delays have been a severe pain point for the grain users and shippers all year.

The DEF shortage story centered on the largest users of DEF – truckers. What's causing the possible shortage and are the concerns imminent? John Phipps looks into the issue in John's World.

Global grain trader Archer-Daniels-Midland Co (ADM) reported a 74% rise in second-quarter profit on Tuesday, benefiting from high demand for grains and tighter supplies following Russia's invasion of Ukraine.

Truckers protesting California's new "gig worker" law blockaded the state's third-busiest seaport for a second day on Thursday, stalling agricultural exports and threatening to worsen U.S. supply chain backups.

Norwegian fertilizer-maker Yara posted slightly higher than expected second-quarter profits on Tuesday and warned there could be shortages of nitrogen-based fertilizers amid high gas prices.

A potential stoppage on the nation's railways this fall is spurring concern, even after President Biden signed an executive order Sunday to keep U.S. rail traffic on track and the collective bargaining process going.

The higher cost of shipping U.S. agricultural inputs and products both internationally and domestically has increased costs of production for U.S. farmers, contributing to a projected decline in net farm income for 2022.

Bottlenecks along U.S. railways are growing more severe. Not only are feed users on the West Coast on the brink of running out of grain, but there are also concerns the rail issues could grow worse during harvest.

Supply chain issues and concerns about sourcing inputs for the 2022 growing season prompted more farmers to try e-commerce for pricing inputs this year as FBN says their website saw an uptick in traffic and sales.

Strong basis bids are sparking questions about the reality of corn supplies and issues in getting grain to areas of the country that need it. Analysts are watching USDA's Grain Stocks report this week for answers.

Russian forces targeted at least two large grain terminals Wednesday in the port of Mykolaiv. Western governments claim Russia is carrying out a campaign to degrade Ukraine’s ability to export food.

Diesel prices are causing sticker shock, as fears of a possible diesel shortage are growing. It’s not just retail diesel prices that are rapidly rising. Some farmers report booking off-road diesel for above $5.

Transforming the U.S. food system by improving supply chains and addressing issues exposed by the Covid-19 pandemic was detailed by USDA Secretary Tom Vilsack during a speech at Georgetown University.

Shanghai offered some tax rebates for companies and allowed all manufacturers to resume operations from June as authorities rolled out policies to revitalize an economy impacted by Covid-19 lockdowns.

After making it through the spring planting season, sometimes with the help of bulletproof vests and helmets, Ukraine's farmers are facing another challenge – finding enough diesel for the harvest to come.

U.S. diesel prices are the highest ever, with warnings of shortages, especially in the eastern U.S., and the most intensive part of the farming season is still ahead.

After just three weeks, Indonesia announced it's lifting its ban on palm oil exports. The move was expected by S&P Global Commodity Insights, saying there was no shortage of palm oil supplies when the ban was announced.

The government of India, the world’s second-biggest wheat grower, announced Saturday a move to mostly prohibited exports, saying that the nation’s food security is under threat.

Diesel prices hit historic highs this week. Due to increased demand and a drop in production, a diesel shortage may be looming as the largest diesel distribution hub in the U.S. is sitting on supplies at a 30-year low.

The April Ag Economy Barometer shows farmers’ concerns about crop inputs are overshadowing optimism surrounding commodity prices hitting decade-highs as some inputs are still in short supply as planting gets underway.

Rail backlogs in the United States are delaying shipment of grains as well as processed flour and corn syrup, contributing to the national problem of inflation, food and grain companies said at a hearing this week.

Trade disruptions in energy, fertilizer and grains are inevitable. In fact, effects are likely to last for years, possibly even decades. 

Increased regulation and the search for better work-life balance are two factors leading to a shortage of truck drivers in the U.S. Walmart is now increasing the starting salary for drivers to try to attract new people.

One of the biggest ag supply chain stories this spring has been pesticides. While my experience is these situations are usually overblown early, the situation could alter the way farmers do business in the years ahead.

Easter egg supplies could be at risk due to the expanding outbreak of Highly Pathogenic Avian Influenza

Surprisingly, Americans spend only about 3% of all consumer expenses on gasoline. Similarly  farmers’ fuel increase is considerable, but is being overshadowed by far worse budget problems.

USDA now expects food price inflation in 2022 to be from 4.5% to 5.5%, compared with 2021, based on the all-food Consumer Price Index. No category shows a potential decline.

A labor dispute that shut down operations at Canadian Pacific Railway Ltd on Sunday is set to aggravate a shortage of commodities, and a prolonged lockdown could hurt farmers ahead of the spring planting season.

The Northwest Seaport Alliance is partnering the USDA to bring the Port of Seattle a 49-acre pop-up site that will accept both dry and refrigerated agricultural products for temporary storage.

Even with Russia removed from the global fertilizer market, it still doesn’t create worst-case scenario. StoneX Group says China could make the situation worse, as China and Russia account for 40% of global phosphate.

Hundreds of trucks, recreational vehicles and cars were circling the outskirts of Washington on Sunday, threatening to cause traffic backups around the capital as part of a protest against pandemic restrictions.

Russia’s trade and industry ministry has recommended the country’s fertilizer producers temporarily halt exports, the ministry said Friday, in a sign that sanctions imposed could have a global impact.

Chicago wheat futures rose sharply on Monday after hitting 13-1/2 year highs on Friday, lifted by concern that Russia's invasion of Ukraine and Western sanctions will continue to disrupt Black Sea region grain exports.

Glyphosate was already in short supply heading into the 2022 planting season, but another black swan event is putting an even tighter squeeze on supplies.

As ag retailers continue to navigate a turbulent supply scenario for planting season, FBN says their glyphosate supplies are in a “comfortable” position. The company explains how they were able to secure supplies.

Pesticide and seed producer Bayer said on Monday a supplier of an ingredient for its widely used herbicide glyphosate has run into technical problems which may hamper Bayer's output of the product in the short term.

While it still pops up in conversation, the “supply chain” has become our go-to explanation for things that are not our fault — and some that are.

Rep. Garamendi says the USDA partnership with the Port of Oakland “isn’t going to solve the problem” because shippers deliver product to the U.S. and leave ports with empty containers.

No matter where you travel across the country right now, farmers share similar concerns. The latest Ag Economy Barometer fell to its lowest reading since July 2020 as the input situation weighs outlooks.

In my arsenal of reasons why things aren’t my fault, recent events have given me a cruise-missile-strength weapon: the supply chain.

Recent COVID-19 vaccine mandates in both the U.S. and Canada could take even more truckers off the road. Trucking industry experts warn while empty store shelves could turn into more fertilizer shortages next.

The U.S. Commerce Department is expected to soon release details from a study of semiconductor chips it conducted last year amid a push to win funding to boost U.S. manufacturing from Congress.

On Dec. 10, 2021, a tornado tore across Kentucky demolishing areas in its path. Farmers and state leaders say it will be a long road to recovery with trouble sourcing even enough fencing supplies to rebuild.

2021 was a strong financial year for many farmers. For 2022, input costs are rising rapidly. One ag lender cites $700 per acre in some scenarios. That means farmers will need strong yields this season to break even.

Nutrien and The Fertilizer Institute share more details on fertilizer industry dynamics in light of reports citing how fertilizer prices are effecting on-farm economics.

The report found nitrogen accounts for more than 50% of fertilizer costs for a corn producer at $117 per acre.

A new report from Texas A&M Agricultural and Food Policy Center (AFPC) a 50% rise in fertilizer prices equates to an average of $128,000 per farm. The largest per-acre impact would falls on rice farms at $62.04 an acre.

Have record high fertilizer prices finally peaked? While prices continue to remain high right now, there were some signs last week and already this week that indicate some relief and stability may be in sight.