CoBank

CoBank is a unique organization that does amazing things to support rural America. That’s because we are a mission-driven organization, which makes us different from other financial institutions you’ve met along the way. We believe in doing the right thing for the right reasons. Just like you. https://bit.ly/3umUWy5 #recruiting

U.S. winter wheat planting just passed the half-way mark with 51% of the crop planted as of last week. How many acres will be planted to winter wheat this fall? That depends on class - hard red winter (HRW), soft red winter (SRW), and white winter - and how competitive they are profit-wise versus other crops. Wheat prices have rallied recently on drought conditions around the world, but prices of other crops have also climbed. Using the wheat/corn price ratio at the beginning of planting season in September as an indicator of how many winter wheat acres may be planted this fall, total winter wheat acreage will be little changed from last year: Potential losses in HRW and white winter acreage may be made up for by increases in SRW. Most of the acreage depends on HRW, which comprises about 70% of all winter wheat each year. The Kansas City HRW/corn price ratio in September was 1.37, just under last year’s 1.39 and slightly below the prior three-year average of 1.41, indicating HRW is at risk of losing 1-3% amount of acreage YoY from the 23.783 million planted last year. An increase in CRP acreage allotments may also reduce HRW acres as the Central and Southern Plains region tends to use the CRP program more than other regions. The Chicago SRW/corn price ratio rose to 1.37, well above last year’s ratio of 1.14 and the three-year average of 1.28, indicating a 5-10% YoY increase from the 6.094 million SRW acres planted last year. This would be a rebound from last year’s steep drop in acreage. White winter wheat, grown predominantly in the Pacific Northwest, has tended to see very little variation in acreage over the last 10 year. Using the Portland cash price for soft white wheat (SWW), the SWW/corn ratio fell to 1.46, down from last year’s 1.54 and below the three-year average of 1.72, indicating a slight retraction from last year’s planted acreage of 3.513 million.? Drought conditions across U.S. winter wheat country, though, are raising a red flag on acreage. Persistent dry conditions across the HRW growing region of the Central and Southern Plains and the main SRW regions of the Midwest are delaying planting progress - but not by a concerning amount. The main concern for wheat planted in dry soils is poor fall establishment, risking greater winterkill and reduced yield potential. If crop conditions are poor heading into spring green-up, high cattle prices may incentivize graze-out. That would be more impactful for final harvested acreage rather than planted acreage. #wheat #HRW #SRW #SWW #grain #agriculture #commodities #OATT CoBank

The Federal Reserve finally began cutting interest rates in September. But rates will likely remain above pre-pandemic levels through at least 2025. What that means for borrowing costs: https://bit.ly/482xPbg #interestrates

Nearly 80% of U.S. consumers indicate they are stressed out over high household #energy costs. Meanwhile, utilities are requesting rate increases at a record pace. Are we approaching a breaking point? https://bit.ly/482xPbg

AI technology and #datacenter investments are widely expected to propel the U.S. economy. But the widening imbalance between #energy demand and supply could derail the #AI boom, putting U.S. economic growth in jeopardy: https://bit.ly/482xPbg

CoBank’s Corey Geiger was honored to spend time at the World Dairy Expo with USDA’s Secretary of Agriculture, Thomas Vilsack, discussing the future of the American dairy industry and the need to support all sized dairy farmers. Vilsack has been a strong proponent of the U.S. dairy industry advocating for producers and innovation in the industry. CoBank is a proud partner supporting all sectors of the #dairy industry, financing producers and processors to ensure the entire supply chain has a trusted lender who understands their business. CoBank was honored to discuss the industry with the Secretary and we look forward to more thoughtful conversations around how we can continue to make investments to enhance future opportunities for American dairy producers and processors.

This week I’m in beautiful (and hot) Palm Springs talking about how economic and industry forces are impacting M&A and valuations in the broadband market. Thank you WTA - Advocates for Rural Broadband and Kelly Worthington for the opportunity to spend time with your members. #cobank

We are proud to announce that we’ve partnered with AgFirst Farm Credit Bank, Farm Credit Bank of Texas and Farmer Mac, to provide a joint $315,000 contribution to the American Red Cross to support relief efforts in the communities impacted by Hurricane Helene. In addition to the American Red Cross contribution, CoBank is contributing $25,000 to the Disaster Recovery Fund through a joint effort with Cooperative Development Fund and NRECA $25,000 to the Farm Credit System Employee Relief Fund through a joint effort with the Farm Credit Council, and $25,000 to the National Rural Water Association (NRWA). CoBank has also set aside an additional $75,000 to be designated once long-term needs become clearer.

It's National #CoopMonth, and one way we demonstrate Concern for Community, Cooperative Principle #7, is by showing up for the communities we serve and making a positive impact. This summer, CoBank organized two volunteer days with ag industry partners at DC Central Kitchen. Together, volunteers chopped locally-sourced fruits and vegetables and assembled meals to nourish DC’s seniors and school children, ensuring they have a delicious meal to enjoy. Thank you to our partners for joining us in the CoBank Volunteer Zone for a day of Fighting Hunger Differently. #CoopMonth Farm Credit Council American Farm Bureau Federation National Farmers Union (USA) Land O'Lakes, Inc. Cornerstone Government Affairs National Cooperative Business Association CLUSA International (NCBA CLUSA) Co-op Development Foundation

As we recognize Co-op Month, it’s a moment to appreciate the power of collaboration. AgWest Farm Credit embodies this by focusing on the unique needs of its members in the agricultural sector. Their commitment to understanding and supporting local farmers showcases how cooperatives can create lasting value for communities. Take a look at how AgWest is making an impact: https://bit.ly/3TyFjfn