Odoriferous Effervescence of Concord Grapes
A few weeks ago I mentioned some scents that really stimulate the senses, I even had individuals suggest a few more - thank you! I was remiss on one that we just finished...
...we have hedge of concord grapes that we make juice from annually. These grapes are at their peak of odoriferous effervescence. Even the neighbors comment on the aroma that fills their yard and home with the scent. If you've not had the pleasure, think of the scent of your favorite grape jam/jelly/preserves, when opened for the first time, but amped up many times over. I can only imagine being surrounded by acres of a juice vineyard...with a name like Smuckers, it's gotta be good!
10/1/18 - Interest attaches today for MPCI (yield protection and revenue protection) premiums. Being the 9/30 deadline was over the weekend, premiums postmarked after today can count on having interest charges added to what's owed. If you've already sent and later this month receive a premium invoice, please call us and we'll visit with the corresponding accounting department on your behalf to inquire as to why.
10/14/18 - Fall canola production reporting deadline. If you had any fall planted canola this past year, the production deadline is mere days away...avoid the penalty for not timely reporting and get 'er done.
10/15 & 16/18 - We've indicated here previously that we're planning to host a "Risk Mgt Summit" in Walla Walla and Colfax. Dates are set for Walla Walla on Monday and Colfax on Tuesday, at the airport meeting room and training center respectively. The meetings will start at 930am, will conclude with a catered lunch. Please plan to attend.
11/14/18 - Speaking of production reporting deadlines, the production deadline for wheat will be here sooner than you know as well.
Boris & Natasha - Our dastardly duo is at it again. This time, staging a blockade, slowdown of Ukrainian cargo ships from Azov Sea, through the Black Sea...if things continue to escalate, grain shipments could be interrupted - if grain shipments are interrupted, things will escalate.
Deadlines - Why does DC continue to not get anything done early, rather at (or much past) the deadline? Farm Bill, NAFTA, to name but a couple...Lord knows the expiring Farm Bill wasn't a surprise; heck, our elected officials have known about it since February of 2015, when they finally passed the 2014 Farm Bill, albeit late! I challenge any business to be successfully managed in a similar manner. Don't forget there's a continuing resolution (budgetary spending limits) that expires on December 7, 2018...the administration has already threaten to shut-down the government. Exciting times.
Farm bill - It is now October 1st in our Capitol, and there is no news of an agreement. What was said by both sides is that 'we are close' and have agreements on most all titles, has unraveled beyond the differences of the nutrition bill to virtually no agreements on any titles. Nearly forty (39) programs (Foreign Market Development (FMD), Title 1 (ARC/PLC) revert back to permanent law, most food and trade aid programs expire) have no baseline (funding) as of midnight eastern time tonight/today. Jim Weisemeyer, Farm Journal political analyst/strategist, has said that there was more money available during the 2014 Farm Bill negotiations than there is today and look how long that took. Additionally, Weisemeyer says both Senators Stabenow and Roberts have the misunderstanding that the "real expiration" of the current farm bill isn't until December 31st. There's no guarantee an agreement happens before or after the upcoming elections; campaigning now becomes a priority, in their eyes...
Fertilizer - I've come across several articles indicating that the cost of fertilizer will be higher again in 2019 season. "Expect Higher Fertilizer Bills Next Season?"
And this related story that says this will continue for the next decade...
Markets - USDA released another bear friendly report this past Friday, with the quarterly stocks report. Higher carryover stocks were assigned to all commodities: corn, up slightly; soybeans, up significantly; wheat, usage down 8%. Pray tell, what have the increased animal placements in this country been eating for the past year? The twelve month moving average of feedlots show the inventories over the past year, are the largest average in eleven years (since 2007). The hog herd is also growing, up 3% from last September (2017), and up 3% from June 1st.
The story that follows should provide a boost for our markets.
NAFTA - Perhaps I was premature with my accusation that 'DC' gets nothing done timely or prior to any deadline. This was reported by Bloomberg just past 9pm eastern time - looks like the frame work for an agreement between Canada, Mexico and the US is done, according to this story from Bloomberg.
Risk Management Summit - As indicated above, we are sponsoring a conference in a couple of weeks. An update on last year's tax reform, an agronomic update, as well as markets and weather. There were minimal changes this fall pursuant to crop insurance, so we chose to go this route - larger, more speakers and topics. Please plan to spend the morning with us to help with planning for your marketing and tax planning for 2019.
Until next time,
"You can discover more about a person in an hour of play than in a year of conversation" ~Plato
McGregor Risk Management Services, LLC
Cell - 509.540.2632
Office - 509.843.2599
Fax - 509.843.2583