Agriculture Update 2022

Whether you’re looking to understand how agricultural exports, trade policy, and cash receipts will affect agriculture in the coming years, this report will help you. It includes information on global crop balances, Agri-tech projects in 48 countries, and farm cash receipts. You’ll also find an explanation of the Farm bill’s commodity payments, as well as information on U.S. agriculture exports and trade policy.

Global crop balances

Despite strong global economic growth, global crop balances for agriculture are expected to be tight in 2022. The number of acres planted in spring 2022 will determine the level of global supply. A high harvest will help mitigate the food price shock. However, higher fertilizer prices could reduce yields in some countries. The impact of climate change on crops is increasing.

Harvesting continues in Brazil and South Africa. Wet-season rice in northern India and Southeast Asia will be affected by storm systems. The ongoing war in Ukraine disrupts the harvesting season. This can also limit grain supply to world markets.

Increasing demand for commodities in 2022 will underpin prices as the world economy recovers. However, food stocks are still concentrated in a small number of countries. Trade restrictions could further squeeze global supplies.

Farm cash receipts

Agricultural cash receipts are expected to reach a record level this year, with total receipts expected to surpass $251 billion. This forecast reflects increases across most commodity categories. Cash receipts for vegetables, fruits and nuts are expected to fall by about three percent. The largest increases are expected for corn, wheat and soybeans.

Agricultural commodity cash receipts are expected to increase by almost $91.7 billion, or 21.2%, from 2021 to 2022. These increases include program payments, sales of crops and other farm-related income. In 2022, receipts for livestock are expected to increase by 28 percent, and cash receipts for poultry are expected to increase by 29 percent.

Farm bill commodity payments

Agricultural producers have the opportunity to update their commodity program information for the first time since 2002. They will have until March 15, 2022 to do so. The results of this update could have a significant impact on the future of food and agriculture.

In addition to offering farmers the opportunity to update their information, the new farm bill must also ensure critical programs continue to work. This includes nutrition assistance, research, and conservation initiatives.

A number of key industry groups have been engaged in the Farm Bill debate, including the American Farm Bureau Federation, National Corn Growers Association, International Dairy Foods Association, and the Environmental Working Group. This broader group of industry stakeholders has a unique opportunity to engage with the Democrat and Republican agriculture leadership.

Argentine wheat exports

Argentine wheat exports in 2022 have been a major concern for the country’s government. The drought-induced losses of the crop have raised concerns that the country could not meet domestic demands. The government has arranged meetings with exporters to discuss the situation.

In the upcoming season, the wheat crop is expected to fall 40% from its record high crop in the previous year. Lower yields are expected in key farming areas, as well as in the Central and Southern provinces.

As a result, the 2022/23 harvest is projected to be far below the previous cycle’s total of 23 million tonnes. According to the Buenos Aires Grains exchange, the forecast has been cut to 12.4 million tonnes, down from a previous estimate of 14.2 million tonnes.

U.S. agriculture exports/trade policy

Despite a slowing global economy, USDA’s latest U.S. agriculture exports/trade policy update projects a record-high U.S. agricultural exports in FY 2022. Exports are projected to reach $196.0 billion, up $5.0 billion from May’s projection.

This record-breaking figure is largely attributed to higher commodity prices and a historic high for U.S. exports of corn, soybeans and wheat in the first four months of the year. In addition, the Biden administration is focusing more on issues affecting the workforce, the environment and supply chains.

The USDA’s latest trade forecast for FY 2022 is a positive sign for American farmers and agribusinesses. Trade policy will need to evolve as the new world order becomes more globalized. The Biden administration acknowledges the importance of trade-enhancing tools, but has not yet outlined a vision for new trade agreements.

Agri-tech projects in 48 countries

Despite global advances in agriculture, small-scale farmers in developing countries face unprecedented challenges. For example, climate change is threatening food security and jeopardizing political stability. These challenges can be overcome by the use of agri-tech. This is particularly true in the Caribbean.

Agri-tech can help produce more food, reduce food waste, and build a greener food system. It can also help to mitigate climate change. In addition, the technology can also help farmers work smarter and more efficiently.

AYUTE Nigeria is a firm that connects tomato farmers to premium markets. It is aiming to reach 250 tomato farmers by 2025. The firm is backed by investors such as Asha Impact and Info Edge (India) Ltd. It also supports young entrepreneurs.