Economy

Commodities Shuttle: High commodity prices make US producer conserve smaller area

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The high price of commodities makes the North American producer reduce the area of ​​land that will be destined to agricultural conservation this year.

The increase in income recently obtained by the sector reinforces the producer’s option for a smaller conservation area.

The General Conservation Reserve Program (CPR) is voluntary, and producers make decisions based on market opportunities.

Close to 800 thousand hectares, whose registration expired this year, are being re-enrolled in the program. The area of ​​registrations that expire, however, totals 1.4 million hectares, as reported by the Usda (United States Department of Agriculture) this Tuesday (3).

The offer of new areas for the program is only 162 thousand hectares, 57% of what it was in 2021.

The program allows the producer to sow several species for environmental conservation, such as grasses or trees released for planting.

According to Usda, the goals are to control erosion, improve soil health and water quality, and create conditions for wildlife on farmland.

The lands enrolled in the program also play a key role in climate change mitigation efforts, as assessed by the government agency.

Created in 1985, the program was originally designed to control soil erosion and stabilize commodity prices by taking marginal land out of production through a government incentive that is based on the type of vegetation in the enrolled areas.

The flu avian Avian influenza outbreaks are increasing in the United States. There are already 265, and 164 of them take place on commercial farms. There are 37 million birds affected.

Resources To help fight the disease, Usda transferred another US$ 263 million to the country’s inspection service. The funds serve to indemnify producers, diagnoses and other costs.

Wheat India’s intention to seize part of the world wheat market left by Ukraine may not materialise. The Indians expected to put up to 12 million tons of cereal on the foreign market, but the drought that is ravaging the country should prevent it.

prices Agricultural commodities fell again this Tuesday in the foreign market. Corn retreated 1.3%; and soybeans and wheat, 1% in Chicago. In Brazil, the price of wheat rose by 0.53%, while that of soybeans fell by 1%; and corn, 0.3%, according to Cepea data.

AgricultureCommodities Shuttleleaflivestockwheat

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