Ag Policy for Ag Policy’s Sake

Until recently Commercial Ag could rely on a few trends setting the backdrop of any trade strategy or price discussion:

1. The rise of China
2. RFS style policies driving biofuel demand
3. Declining interest rates, and
4. Supply growth via South America corn/soy and Mal/Indo palm oil.

Today, China demand is plateauing, the RFS is ineffectual, and interest rates are up.  The only trend remaining is S American supply growth.

Each of these things on their own are headwinds for US Agriculture.  All at the same time…..it sets the table for a long, difficult period in flyover country.

With that new backdrop, today’s headlines about Cali putting a cap on soy/canola as feedstocks for LCFS compliance crystalized something for me. 

US Agriculture needs strong policy specifically designed for US Agriculture.

California never claimed the LCFS was there to support domestic ag policy or our rural economy.  And that was made crystal clear with today’s news.

It feels like Ag policy doesn’t stand on its own like in the past.  We find ourselves talking about carbon in an Ag context.  Or transportation in an Ag context.  Or wind/solar, in an Ag context.

Its time to reframe the conversation.  Let’s talk about Ag in an Ag context.

Ag and rural economies are struggling. And that will continue without good policy specifically designed to address Ag issues first.