Diesel surged above $6 on average as farm debt reached record highs
On Oct. 21, Patrick Thomas reported for The Wall Street Journal that the Trump administration was launching the Harvest Fuel Relief program, which would result in another $8 billion in direct aid to U.S. farmers. The announcement came two weeks before the midterm elections. The Morning Ledger described farmers as under severe strain because of high fuel costs and fertilizer expenses in the wake of the war in Iran.
Higher fertilizer costs and a recent drop in selling prices for corn are expected to drag on farmers’ profits, The Wall Street Journal reported. The report also said diesel prices have surged to more than $6 a gallon on average, hurting farmers who run equipment such as combines and tractors. It said U.S. farmers have been losing money for years because of low commodity prices and inflation, while USDA data show farm debt has reached record highs.
The Wall Street Journal said the administration’s $8 billion payments were meant to help farmers’ finances at a time when they are spending money on everything from fuel to fertilizer. The new government money was intended to help farmers maintain their current spending levels on high-tech crop seeds, fertilizer, equipment and pesticides so they could continue growing larger crops. The report identified companies selling products that help farmers increase harvests as the biggest potential beneficiaries of that spending.
Supplier roles in the farm-aid analysis
Within that supplier analysis, Bayer and Vylor were identified as sellers of novel crop seeds that can withstand various insecticides and herbicides. The report said both companies are trying to invest more in their own research and development and that their ability to pass along price increases for developing new crop seeds is key.
CF Industries and Nutrien were identified as fertilizer suppliers that could benefit. The newsletter said more government payments would mean farmers would not have to cut back fertilizer purchases for next year’s growing season.
Deere was included among equipment companies that could benefit. The report said companies such as Deere were trying to persuade farmers to buy a new combine or planter for next year.
Amazon plans more than 300,000 holiday workers
In a separate item, Robb M. Stewart reported that Amazon.com plans to hire more than 300,000 workers for its U.S. operations to help with the holiday seasonal surge. Amazon.com said it was seeking people for both part-time and full-time roles in core operations nationwide. Stewart reported that job openings would be posted weekly from October through December.
Study links earnings-call participation to promotions
The newsletter also presented a study on the traits that make a good executive, coauthored by Wei Cai, an associate professor at Columbia Business School. Cai said: “It’s not about being nice or inclusive.”
The study found that executives who invite colleagues to speak on quarterly earnings calls are more likely to be promoted. Executives who regularly invited colleagues to speak on calls had a 13% promotion rate, compared with 6.7% for executives overall.
Other newsletter listings and resources
The Morning Ledger, which provides daily news and insights on corporate finance from the CFO Journal team, also included a standalone organization list without explaining any relationship between the listed companies and the farm-aid analysis: Abbott Laboratories, AT&T, CME Group, Crown Holdings, CSX, IBM, Kinder Morgan, Las Vegas Sands, Meta Platforms, Moody’s, NextEra Energy, Northern Trust, Philip Morris International, Rollins, SAP, Southwest Airlines, Tesla, Texas Instruments, United Rentals, Waste Connections and Westinghouse Air Brake Technologies.
The newsletter separately described the WSJ CFO & COO Council as convening financial leaders so they could gain perspective on navigating market uncertainty, aligning priorities and making decisions that deliver measurable results. It described the WSJ Leadership Institute’s CFO Journal as offering corporate leaders and professionals CFO analysis, advice and commentary to help them make informed decisions. The listed subjects were corporate tax, accounting, regulation, capital markets, management and strategy.
The newsletter identified the WSJ CFO Journal Team as comprising reporters Kristin Broughton, Jennifer Williams and Bureau Chief Walden Siew.