Bookings for record-breaking shipments of U.S. corn and soybeans to feed a Chinese hog herd recovering from African swine flu has bumped the crop price to multiyear highs.

That demand means U.S. grain growers will fetch a good price, while livestock farmers are concerned that higher feed costs, and the potential loss of pastureland, will impact their bottom lines.

The U.S. Department of Agriculture recently confirmed three separate sales of U.S. corn to China for delivery in the 2020-21 year, ending Aug. 31. Those sales total 3.74 million tons, or 147 million bushels. A January booking of 1.7 million tons is the sixth-largest, single-day sale of U.S. corn since 1977, and two of the sales to China last summer are in the top five.

“Farmers are excited about it, because the more demand we have, the higher their cash price goes,” said Robert Harper, grain division manager for Virginia Farm Bureau Federation. “Today in Virginia, looking at the futures market, we’re around a six-to-seven-year high on corn prices, and we’re at an eight-year high on soybean prices.”

Harper said so much feed grain was purchased that U.S. supplies are low, so he expects prices to stay elevated throughout the summer.

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Great news on important budget issues and the minimum wage bill everyone’s been talking about this session! Andrew and Stefanie tell you all about it below.

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The U.S. Department of Agriculture has issued its final rule on domestic hemp production, introducing several improvements to reduce the regulatory burden on farmers.

The final rule was announced Jan. 15 and replaces the interim final rule published Oct. 31, 2019. Regulations outlined in USDA’s final rule will go into effect March 22.

Under the final rule, farmers now have increased flexibility when sampling their crop for THC levels. Samples may be collected 5 to 8 inches from the crop’s main stem, terminal buds and central colas, which are stems that could develop into a bud.

Under the interim rule, sampling procedures varied among states, but under the final rule they will be uniform across the U.S. The new measurement requirements will allow more plant material to be used during the sampling process, which could help limit crops from exceeding allowable THC limits.

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As populations shift from rural to urban areas and political maps are reexamined, agricultural advocates hope farmers and rural Virginians can maintain a cohesive voice.

A diverse group of eight Virginians will join eight legislators in serving on the state’s new redistricting commission. They soon will be tasked with redrawing the state’s political maps using new U.S. Census data.

A panel of retired judges chose 64 finalists from 1,200 applicants selected by General Assembly leaders. The judges then picked six men and two women of varied race, age, political affiliation and geographical location to fill the eight citizen seats on the 16-member commission.

The commission’s eight legislative seats were chosen by the General Assembly’s four political caucuses and also represent the state’s geographical makeup.

Del. Les Adams, R- Chatham, was one of the two House Republicans appointed to a seat on the commission. He represents Henry and Pittsylvania counties, where his father and grandfather farmed. He said the constitutional amendment creating a redistricting commission was widely endorsed.

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The special session of the 2021 General Assembly is winding down. Andrew and Stefanie break down what you need to know below.

Check out this week’s Merchandiser Minute!

Last year’s enormous agricultural commodity price drops due to the COVID-19 pandemic were a “black swan” event, said Dr. David Kohl, Virginia Tech professor emeritus of agricultural finance and small business management.

Speaking at the virtual 2021 Virginia Grain and Soybean Annual Conference, Kohl said unanticipated world events tend to occur at least once a decade, and grain farmers need to prepare for rapid changes this year.

“We’re going to have inflation creep, particularly in expenses and machinery,” he noted. “Some of this volatility will be extreme. We can’t change what comes out of China or election results. The things we can control are our business—production, finance, marketing. Really good managers zero in on the things you can control in your business.”

The economic volatility Kohl expects will offer opportunities for some producers to prosper, but only if they’re willing to take chances on new business. “In this management transition period, entrepreneurs are the ones who will thrive,” he said.

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The Office of the U.S. Trade Representative launched an enforcement action against Canada in December, and farmers and agricultural organizations are eagerly waiting to see how the disagreement unfolds under the new Biden administration.

“This is the first test of the new U.S.-Mexico-Canada trade agreement, and we will be watching it closely for how each side handles the dispute and what possible impacts will trickle down to producers,” said Ben Rowe, national affairs coordinator for Virginia Farm Bureau Federation.

Former USTR Robert Lighthizer brought the enforcement action against Canada, challenging its allocation of negotiated dairy tariff-rate quotas for dairy products. Under the USMCA agreement, Canada can impose TRQs at specific thresholds, setting limits on the quantity of certain dairy products that can be imported at a lower tax rate.

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Neither snow nor sleet nor freezing rain will keep Andrew and Stefanie from giving our General Assembly update for week 5! Tune in to hear about budget issues and learn what policy development meetings are going to look like this year.