Republican presidential hopefuls are ramping up their visits to Iowa as they seek to win over the ag-heavy state ahead of its Jan. 15 caucus.
Florida Gov. Ron DeSantis and former South Carolina Gov. Nikki Haley will head to Des Moines on Thursday to participate in town halls held by CNN, before participating in an Iowa-focused debate hosted by the network on Jan. 10. Former President Donald Trump, meanwhile, will skip the debate to appear at a town hall hosted by Fox News at the same time.
Businessman Vivek Ramaswamy, who did not qualify for the debate, will host his own “live-audience” show at the same time.
For a look at what people in Iowa are saying about the candidates and their messages on agriculture, check out today’s Agri-Pulse Newsletter, where you can also see our previews of the 2024 agendas on Capitol Hill and the executive branch.
Shipping giant staying away from Red Sea
Global shipping behemoth Maersk says it will be avoiding the Red Sea “until further notice” after security incidents in December threatened the safety of the voyage through the region.
A series of December attacks on ships passing through the sea prompted Defense Secretary Lloyd Austin to form Operation Prosperity Guardian Dec. 18 in a bid to maintain the safety of movement. But on Tuesday, Maersk said a Dec. 30 attack led the company to “pause all transits through the Red Sea/Gulf of Aden until further notice.”
Cargo will be routed around Africa while the Red Sea is off limits for the company.
By the way: The situation compounds an already dicey global shipping picture complicated by the drought-induced limitations of the Panama Canal and the stifled movement of grain and other goods through the Black Sea region as Russia’s invasion of Ukraine continues.
Soy Transportation Coalition Executive Director Mike Steenhoek says many American shippers are looking to West Coast ports for cargo that can be shipped in that direction.
“You’re kind of pushing that geographic draw area further to the east,” he said. “There might be soybeans now from eastern Missouri, eastern Iowa, or western Illinois where normally you wouldn’t put those into a railcar to go the Pacific Northwest. But now, there’s more of a tendency to do that.”
Market prices rising concern for farmers
Ag input costs continue to be a significant cause for concern among farmers, but they’re increasingly worried about falling commodity prices as well.
Some 26% of farmers surveyed in December for the Purdue University-CME Group Ag Economy Barometer said the risk of falling crop and livestock prices was a major concern. That’s up from 16% last January.
Some 24% of the surveyed farmers also said in December that rising interest rates were a big concern.
As for input costs, 31% of the survey respondents said those were a major concern, down from 42% one year ago.
By the way: Farm policy is a significant concern of just 4% of the farmers who were surveyed last month.
Pork law in effect in California while lawsuit continues in Massachusetts
Proposition 12, the California law that prohibits the sale of whole pork in the state that comes from the offspring of sows raised in gestation crates, is ready to be implemented.
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After delays due to court challenges and the need to wait for a ruling from the Supreme Court, Prop 12 is now law.
The state has registered more than 1,250 producers and distributors to sell Prop 12-compliant eggs and pork.
Meanwhile, in Massachusetts pork processors are challenging a similar law approved by voters. A major difference is the Massachusetts law, known as Question 3, does not allow transshipment of pork that does not meet the cage-free requirements. Massachusetts recently filed a brief opposing the companies’ efforts to stop the law.
USDA sets January loan interest rates
January interest rates for Agriculture Department loan programs announced by the agency Tuesday line up closely with those set in December.
According to a USDA press release, direct farm operating loan interest rates were at 5.625% in January, a slight decrease from 5.75% in December. Rates for direct, down payment and joint financing farm ownership loans and amount of actual loss emergency loans remained the same.
He said it: “If you want to lose a lot of the government’s leading scientists, it would be an excellent idea to make them all move to Humboldt, Iowa, or even Des Moines." -- Storm Lake Times Editor Art Cullen on Ron DeSantis’ promise to give Iowa “first dibs” as a potential headquarters for the Agriculture Department.
Philip Brasher, Spencer Chase and Noah Wicks contributed to this report
Please send questions, comments and tips to Associate Editor Steve Davies.
