Commodities Shuttle: US government wants second annual grain crop

Food inflation hit the American table hard, and President Joe Biden wants to encourage even a second annual harvest in several areas of the country to increase food supply.

For US farmers, the second crop will not be as easy as it is for Brazilians. Weather conditions in most US production areas do not allow for second planting.

Due to these risks, the US government will increase insurance in municipalities with the possibility of a second crop, benefiting producers who take a risk in this second planting.

Producers who sow soybeans after wheat currently bear the costs in the event of adverse weather conditions.

In the government’s assessment, US farmers should increase grain production to partly compensate for the absence of Ukrainian products on the international market.

On a farm in Illinois, on Wednesday (11), Biden said that at least 20 million tons of grain are sitting in warehouses in Ukraine, with difficulties to be placed on the international market, due to the war provoked by the Russians.

The President of the United States warned about the need for investments in agriculture to increase production, but also highlighted the need to reduce costs in the production process.

As for costs, fertilizer is one of those that have risen the most recently. Therefore, the government will double the volume of credit for domestic production of fertilizer, a program initially announced in March this year.

With the new transfer, the subsidy given to the sector will reach US$ 500 million. To qualify for this line of credit, the fertilizer producer needs to be independent and not linked to current large suppliers.

In addition, the fertilizer must be produced in the United States and by American companies, with the aim of reducing foreign dependence. Like Brazil, the United States also has external dependence in this sector.

By encouraging the increase in grain production, Biden wants to ward off the specter of inflation that, like in other countries in the world, affects the United States. The annual rate of inflation is 8.3%, driven by food, which recorded a high of 9.4% in the period. Four decades ago, the country did not register such high rates.

To increase productivity and reduce production costs, the US government promises to expand technical assistance to producers and improve the country’s infrastructure.

Coffee Last month Brazilian exports dropped to 2.81 million bags, 24% less than in April 2021, according to data from Cecafé (Coffee Exporters Council of Brazil).

Coffee two With the retreat of April, the exports accumulated in the year fall 11%, in volume. Revenues, on the other hand, due to high prices, rose to US$ 3.1 billion, 56% more than from January to April of last year.

It is made war Brazilian coffee exports to Russia dropped to 273,000 bags from January to April, down 35% from the same period last year, according to Cecafé.

In return Imports of chicken meat from the European Union made in Brazil rose 19% in the first two months of this year, reaching 36 thousand tons.

It might be more With the difficulties of exports by Ukraine, the Europeans informed that they will have to import more Brazilian product.