American Ag Today- 1/31/25
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January 31, 2025
TLDR: Latest agriculture news covered on American Ag Today podcast

Welcome to the latest episode of American Ag Today, hosted by Jesse Allen. This episode features discussions on preparing for potential tariffs in 2025, new grazing opportunities for sheep, adjustments in soybean and corn pricing, as well as insights on U.S. beef and pork exports to South Korea.
Preparing for Tariffs in 2025
With the prospect of trade wars looming over the agriculture sector in 2025, producers are advised to take proactive steps to mitigate the impact. Kirk Covington, senior director of institutional business at Ag America, emphasizes that relying on hope is not a viable strategy. Here are key strategies mentioned:
Stress Revenue Figures:
Assess how low your revenue can fall without compromising essential expenses like living costs, debt payments, and capital replacements. This understanding is crucial to avoid financial setbacks.Deferring Major Purchases:
Consider postponing significant investments in equipment and land until the implications of tariffs are clearer. Prioritizing needs over wants can help in making more informed decisions.Build Liquidity:
Ensure adequate working capital to act as a buffer against commodity price volatility. This liquidity is essential for navigating uncertain economic conditions.
Covington highlights that the support from the Trump administration is anticipated, especially through market facilitation payments targeting the commodities most affected by tariffs. It’s critical to consider how trade conflicts impact rural communities alongside farmers, as history indicates rural areas often suffer the most.
Opportunities in Sheep Grazing
The American Sheep Industry Association recently held its annual meeting, where Peter Orwick, Executive Director, discussed the innovative use of sheep for grazing on land covered by solar panels. Some noteworthy points include:
Increased Grazing Opportunities:
There’s a growing trend of incorporating sheep into solar field maintenance, which has led to a rise in sheep operations focused on this niche.New Entrants into Sheep Farming:
Individuals not traditionally involved in livestock have started entering sheep farming primarily for the economic benefits of grazing solar fields.
This opportunity illustrates a creative solution aligning agriculture with renewable energy, benefiting both sectors.
Adjustments in Corn and Soybean Price Projections
Agricultural economists from the University of Illinois have revised their projections for corn and soybean crop budgets:
Corn Prices:
- Current prices are projected at $4.30 per bushel, an increase from previous estimates.
- This adjustment could enhance projected returns to $10-$15 per acre.
Soybean Prices:
- Adjusted down to $10.20 per bushel, leading to lower projected returns of $3-$4 per acre.
Nick Paulson, an economist at the University, mentions that these changes do not significantly alter the income outlook. The industry faces a third straight year of losses on cash-rented land, highlighting increasing production costs and emphasizing the need for farmers to maintain a close watch on costs to ensure profitable outcomes.
U.S. Meat Exports Amid Political Instability in South Korea
The U.S. meat export market, particularly for beef and pork, remains robust in South Korea, despite recent political unrest. Insights from Ji Hei Yang, Vice President for Asia-Pacific at the U.S. Meat Export Federation, reveal:
Minimal Impact on Consumer Behavior:
Despite political turmoil, everyday life for Korean consumers remains largely unaffected. Retail sales for meat were strong as families celebrated the year-end together, indicating that meat consumption is resilient even during economic downturns.Currency Exchange Concerns:
The weakening of the Korean won against the dollar has pressured import profitability, although meat consumption has not significantly declined. High exchange rates have affected food service sales more than retail, indicating a shift in consumption patterns rather than an overall decrease.Upcoming Holidays and Consumption:
With the Lunar New Year approaching, consumption is expected to be high, as meat remains a staple during festive occasions. Consumer loyalty towards meat products indicates a strong market outlook.
Conclusion
This episode of American Ag Today sheds light on crucial developments in the agricultural sector, from strategic fiscal planning amidst potential tariff impacts to innovative grazing methods and insights into market dynamics. As farmers navigate upcoming challenges, implementing these strategies will be essential for resilience and adaptation in an ever-evolving landscape. Stay informed on agriculture trends and prepare for the future!
Join us next time as we delve deeper into the critical issues facing the agricultural industry.
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