Fuel Aid Better than Food Aid President Trump says that larger federal receipts from the higher tariffs on goods imported from China will be used to purchase American farm goods that are then shipped abroad to feed the hungry. The precedent for this idea is Section 32 of the Agriculture Act of 1932, which authorizes the use of customs receipts for such purposes. However, the proposal was met with incredulity, including the circulation of a mock picture with grain silos on the White House lawn. The CME was mixed to lower. A fundamental problem with the plan is its sheer volume. The suggested purchase of $15 billion worth of farm products would swamp international food aid, a system that has been moving away from commodity transfers and tow...
Key Market Insights The broad market is locked in on this week’s Trump-Xi meeting in Beijing, but this is no longer just a trade summit. Increasingly, the meeting is becoming tied directly to Iran, energy security, and the growing global economic fallout from disruptions through the Strai...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.