Earlier this week, the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri released its latest baseline update for U.S. agricultural markets.  In part, the baseline update stated that, “The war in Ukraine and weather‐reduced crop supplies have contributed to higher prices for many agricultural commodities, while higher prices for fertilizer, fuel and other inputs have increased farm production expenses. Projected prices for a range of farm commodities and farm inputs are expected to decline in the years ahead but nominal prices remain high by historical standards.
 
“This report, based on information available in mid‐August 2022, updates the 2022 FAPRI baseline outlook prepared earlier this year. Crop production in 2022 is assumed to equal the values reported by USDA in its August Crop Production report and macroeconomic assumptions are based on July 2022 forecasts by S&P Global. Current government policies are assumed to continue, and selected provisions of the recently approved Inflation Reduction Act (IRA) are incorporated along with the 2020‐2022 RFS requirements that were finalized in June 2022. The COVID‐19 pandemic is assumed to continue waning and related supply chain disruptions are anticipated to be resolved in the future.”

 

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