Agriculture Shorts

The Economist reported the European Union and Australia signed a free trade agreement last week after eight years of negotiations. The agreement removes tariffs on most goods with the exception of Australian beef and lamb which still face quotas in Europe . . . A free trade agreement between the European Union and Mercosur (four South American countries) will go into effect on May 1 . . . The Nebraska Corn Board committed $1 million to a new Nitrogen Use Efficiency (NUE) Program, offering payments to farmers who have demonstrated nitrogen efficiency during the 2026 growing season. The program will pay $15 per acre for up to 160 acres per application to producers who meet a specific nitrogen use efficiency score . . . Charlie Bilello said bond markets last week were pricing in a higher probability of a Federal Reserve interest rate hike (25%) than cut (8%) . . . Ty Kreitman of the Kansas City Federal Reserve reported earnings for agricultural banks improved in 2025 due to strong growth in farm loans. Non-real estate loans and real estate loan balances last year increased about 9% and 6%, respectively, at agricultural banks. Kreitman also noted farm loan delinquency rates remain low—1% of all agricultural loan balances were more than 30 days past due at the end of 2025 . . . The 11th Circuit Court of Appeals last week upheld a Florida law banning the sale of lab-grown meat. Nebraska passed a similar law in 2025 . . . Kansas State University agricultural economist Greg Ibendahl projects higher anhydrous prices for the next 12 months due to higher oil prices resulting from the Middle East conflict. Recent March projections suggest a greater probability of prices above $900, compared to earlier projections of prices in the upper $800 per ton range, with $1,000 per ton “certainly on the table for discussion” according to Ibendahl . . . Bloomberg reported record-long airport security lines in Houston have fueled a demand for line-sitters—people paid to hold a spot in line. One person in Houston charges $65/hour plus $6/hour for parking. He had a full day of bookings within 24 hours.