(Radio Iowa) – U-S Trade Representative Katherine Tai joined Congresswoman Cindy Axne, and U-S Ag Secretary Tom Vilsack Thursday at farm near Woodward to talk about global trade opportunities and the Inflation Reduction Act. Tai says the Inflation Reduction Act pushed through by Democrats will be important to the agricultural industry in terms of our trade tools and the design of the way that goods flow in the global economy.  “And we see that there are short term stresses that we’re under that we are responding to. But we also know that there is a medium to long term realignment and transition that we need to go through in order to focus on and build out our resilience as an entire economy,” Tai says.

Ag Dept. via Twitter

They also discussed the high cost of farm inputs, specifically fertilizer. Secretary Vilsack says one issue is making sure that farm income is high enough to be able to help farmers withstand these difficult times. He says prices today are better than they were a year ago.  “And one of the reasons is because we are on par for a record year in exports. So as we continue to look for ways in which we can continue to market now, what are we doing, or we’re maintaining and expanding our presence in these markets, we have more trade missions, we have more assistance efforts underway to try to build existing markets. We’re opening up new opportunities,” Vilsack says. Tai says it’s also reasonable to take a look at the health and functioning of the market here domestically.

“In light of changes that have happened in the international context, and how healthy the competition is here. And what our options are also for creating more supply, creating more resilience, and thinking about how our trade tools can complement that,” she says. Secretary Vilsack was asked about the impact on the Farm Bill. He says it does not impact the decision making for the Farm Bill — it simply allows money through the process to be used on existing programs. “So it’s not like we have to write a whole bunch of rules, we don’t have to write a single rule,” Vilsack says. “We have a backlog of conservation projects that we haven’t been able to fund, not because we don’t have the staff, but because we don’t have the resources, the money.” Vilsack was asked if he sees carbon capture pipelines as essential to “climate smart agriculture.”

“The legislation that’s been passed and by the administration has been supportive of tax credits and basically encouraged this as a mechanism,” Vilsack says. “You know, the reality is, we need a variety of options here, a variety of options. Carbon capture and sequestration is one option, it is by no means the only option, and it is by no means the sole solution.” Vilsack is a Democrat and the former governor of Iowa who is serving his second stint as U-S Ag Secretary after serving in the Obama administration.

(Radio Iowa) – Deere & Company, Iowa’s largest manufacturing employer, is releasing its third quarter earnings report today (Friday) in an online conference call. Deere officials say the company is continuing to grow and thrive in the face of economic setbacks in the global marketplace. Rachel Bach is Deere’s manager of investor communications. Bach says, “John Deere achieved higher production rates in the third quarter resulting in a 25% increase in net sales, despite ongoing supply challenges.” The Quad Cities-based Deere reports net income of $1.88 billion for the third quarter, compared with net income of $1.66 billion in the third quarter last year.  “Financial results for the quarter included an 18% margin for the equipment operations,” Bach says. “Ag fundamentals remain solid with our order books beginning to fill for model year ’23 products reflecting continued healthy demand as we look ahead.”

For the first nine months of the company’s fiscal year, net income reached $4.88 billion, also an increase from $4.68 billion for the same period last year. The production and precision agriculture division reports sales increased for the quarter, which officials say was due to higher shipment volumes and price realization. “The construction forestry markets also continue to benefit from demand contributing to the division’s strong performance in the quarter,” Bach says. “Similarly, order books are now extending into 2023 providing visibility into the new year.”

With one quarter remaining in the company’s fiscal year, net income attributable to Deere is forecast to be in a range of seven to seven-point-two billion dollars. “Net sales and revenues were up 22% to $14.1 billion, while net sales for the equipment operations were up 25% to $13-billion,” Bach says. “Net income attributable to Deere & Company was $1.884 billion or $6.16 per diluted share.”

In a news release, Deere chairman and C-E-O John May said: “We’re proud of the extraordinary efforts by our employees to increase factory output and get products to customers under challenging circumstances. At the same time, our results reflected higher costs and production inefficiencies driven by the difficult supply-chain situation.”